On June 30, 2026, investor Michael Burry announced he has shorted Caterpillar shares at $1,060.98, marking his first bearish bet against the company, which he previously supported. Burry's decision comes as Caterpillar's stock has surged 86% year-to-date, making it one of the top performers in the S&P 500, largely due to its perceived role in the AI infrastructure boom.
He pointed out that Caterpillar's price-to-sales ratio has reached its highest level in three decades, raising concerns about its valuation. In addition to Caterpillar, Burry has also shorted shares of Nvidia, Applied Materials, Tesla, and the iShares Semiconductor ETF, expressing worries about the semiconductor sector's inflated valuations, which he likened to the dot-com bubble of 2000.
He attributed the current rally to significant spending announcements from Korea but warned that this could signal the beginning of a downturn