Burry shorts Caterpillar on valuation concerns, also shorts NVDA, TSLA, AMAT

Investing.com -- Michael Burry disclosed Tuesday that he has taken a short position against Caterpillar Inc, stating the construction equipment manufacturer has become overvalued as a beneficiary of artificial intelligence infrastructure spending.

The investor said he shorted Caterpillar shares at $1,060.98. He also opened new short positions in Nvidia Corp, Applied Materials Inc, Tesla Inc, and the iShares Semiconductor ETF.

"Caterpillar jumped out at me," Burry wrote in a Tuesday SubStack post. "I have never shorted Caterpillar. It has always done great for me on the long side in the past."

Caterpillar shares finished the first half of 2026 with an 86% gain, making it one of the top performers in the S&P 500 this year. Investors have increasingly viewed the company as a way to gain exposure to global AI infrastructure development.

Burry said the company's stock valuation reached levels that drew his attention. He shared a chart showing Caterpillar's price-to-sales ratio climbed to the highest level in at least three decades as the stock reached record highs.

"The proximate cause of today's rally is big spending announced out of Korea. Well, I see that as the beginning of the end," Burry said. "It is only a matter of time now."

You May Also Be Interested In

• Apple suing OpenAI over alleged misappropriation of trade secrets
• Nippon Paint Said To Offer $8.6 Billion For Akzo's Paint Arm - Bloomberg
• Conmed shares jump on potential sale report