"The Big Short" Michael Burry Shorts Caterpillar for the First Time, Also Takes Short Positions on Nvidia, Applied Materials, Tesla Stocks

BlockBeats News, July 1st, Michael Burry, the famed Big Short prototype and investor known for successfully shorting the U.S. real estate market, has revealed that he has shorted Caterpillar. He believes that this construction equipment manufacturer has become one of the overvalued beneficiaries of the AI investment frenzy. Burry stated that he has shorted Caterpillar stock at a price of $1060.98, along with short positions in Nvidia, Applied Materials, Tesla, and the iShares Semiconductor ETF (SOXX), preparing for what he sees as the increasingly overstretched rally in AI-related stocks. In a SubStack post, Burry wrote: "Caterpillar caught my eye. I have never shorted Caterpillar. It has always treated me well on the long side in the past."

In the first half of 2026, Caterpillar's stock price surged by 86%, making it one of the top performers in the S&P 500 index this year. As investors increasingly view it as a proxy play for global AI infrastructure development, Caterpillar's stock price has soared. Burry mentioned that the stock's valuation has reached a level that has caught his attention and shared a chart indicating that Caterpillar's price-to-sales ratio has hit the highest level in at least 30 years, with the stock price reaching a record high.

Burry also reiterated his concerns about semiconductor valuations. He stated that the Philadelphia Semiconductor Index is currently about 65% above its 200-day moving average, a level previously seen only during the 2000 internet bubble. Burry said: "The direct reason for today's rise is the massive spending announced by South Korea. Well, I think this is the beginning of the end. It's just a matter of time now."