economy
Michael Burry says he's shorting Caterpillar for the first time after it nearly doubled in the AI-driven rally of 2026
"Caterpillar jumped out at me," Burry said. "I have never shorted Caterpillar. It has always done great for me on the long side in the past."
TL;DR
- Michael Burry has placed a bearish wager against Caterpillar, a first for the investor.
- He believes Caterpillar is overvalued due to the AI investment boom.
- Burry has also established bearish positions in Nvidia, Applied Materials, Tesla, and the iShares Semiconductor ETF.
- Caterpillar shares have gained 86% in the first half of 2026, seen as a proxy for AI infrastructure buildout.
- Caterpillar's price-to-sales ratio has reached its highest level in at least 30 years.
- Burry notes the Philadelphia Semiconductor Index is trading significantly above its 200-day moving average, similar to the dot-com bubble era.
- He views recent large spending announcements from Korea as a potential indicator of the rally's end.