TLDR
- Michael Burry revealed short positions against Tesla, Nvidia, Caterpillar, Applied Materials, and the iShares Semiconductor ETF
- Burry shorted Caterpillar at $1,060.98 after the stock gained 86% in the first half of 2026
- He called the Philadelphia Semiconductor Index trading 65% above its 200-day moving average a warning sign last seen during the dot-com bubble
- Burry described a Korean tech spending announcement as “the beginning of the end” for the AI rally
- He also holds a short position in Palantir and has previously criticized Nvidia’s financing arrangements
Michael Burry, the investor made famous by his bet against the housing market in 2008, has revealed a fresh wave of short positions targeting some of the biggest names in the AI-driven stock rally.
In a Substack post dated June 30, Burry disclosed bearish trades against Caterpillar, Nvidia, Tesla, Applied Materials, and the iShares Semiconductor ETF.
He said he shorted Caterpillar at $1,060.98, calling it one of the market’s most overvalued beneficiaries of AI infrastructure spending. The stock had gained 86% in the first half of 2026 alone.
“Caterpillar jumped out at me,” Burry wrote. “I have never shorted Caterpillar. It has always done great for me on the long side in the past.”
He shared a chart showing Caterpillar’s price-to-sales ratio at its highest level in at least three decades, reached as the stock hit record highs.
Semiconductor Warning
Burry also pointed to the Philadelphia Semiconductor Index as a cause for concern. He said the index was trading about 65% above its 200-day moving average, a level not seen since the dot-com bubble in 2000.
He said the price-to-sales ratio on the index was above 16x, even excluding Nvidia. “The SOXX itself is a pure form of overvaluation in an index,” he said, adding that a decline was only “a matter of time.”
Burry moved his put options on the semiconductor ETF from a January 2027 expiry to March 2027, while raising the strike price from roughly $320–$350 to above $400.
He also shorted Nvidia at $198.09. Burry has previously labeled Nvidia’s financing arrangements “fugazi,” outlining how complex structures involving insurers, reinsurance entities, and private credit firms help fund AI infrastructure spending.
Tesla and Applied Materials
Burry said he shorted Tesla at $416.22, adding: “Happy it jumped back to this level.” He did not disclose the size of the position.
Tesla is down about 4% year-to-date despite an 11% weekly gain leading up to Burry’s trade. Investors have flagged falling EV sales and delays in the robotaxi and full self-driving rollout as ongoing concerns.
Applied Materials was also shorted at $729.40. Cantor Fitzgerald separately raised its price target on the stock to $850 from $650, reiterating an Overweight rating.
Burry holds a short in Palantir as well, though he provided fewer details on that position.
He tied the recent AI rally partly to Korean tech spending announcements. “I see that as the beginning of the end,” he said.
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