Michael Burry attends “The Huge Quick” New York screening on the Ziegfeld Theater in New York, on Nov. 23, 2015.
Astrid Stawiarz | Getty Pictures
Michael Burry mentioned Tuesday he has positioned a bearish wager towards Caterpillar, believing the construction-equipment maker has grow to be one of many market’s most overvalued beneficiaries of the bogus intelligence funding growth.
The famed investor mentioned he shorted Caterpillar shares at $1,060.98, alongside new bearish positions in Nvidia, Utilized Supplies, Tesla and the iShares Semiconductor ETF (SOXX), as he ready for what he believes is an more and more overextended rally in AI-linked shares.
“Caterpillar jumped out at me,” Burry wrote in a Tuesday SubStack submit. “I’ve by no means shorted Caterpillar. It has all the time executed nice for me on the lengthy facet up to now.”
Caterpillar shares simply capped off the primary half of 2026 with an 86% achieve, making the development tools big one of many best-performing shares within the S&P 500 this yr as buyers more and more embraced it as a proxy for the worldwide AI infrastructure buildout.
Caterpillar yr to this point
Burry mentioned Caterpillar’s inventory valuation has reached ranges that caught his consideration. He shared a chart exhibiting Caterpillar’s price-to-sales ratio climbing to the best degree in a minimum of three many years on the identical time the inventory surged to document highs.
The investor, who famously predicted and profited from the subprime mortgage disaster in 2008, additionally reiterated his broader considerations about semiconductor valuations. He mentioned the Philadelphia Semiconductor Index is buying and selling about 65% above its 200-day transferring common, a degree he mentioned was solely reached beforehand in the course of the dot-com bubble in 2000.
“The proximate explanation for right now’s rally is huge spending introduced out of Korea. Effectively, I see that as the start of the top,” Burry mentioned. “It is just a matter of time now.”
