Key Takeaways
- The investor famous for predicting the 2008 financial crisis disclosed short bets against Tesla, Nvidia, Caterpillar, Applied Materials, and a semiconductor ETF
- Caterpillar was shorted at $1,060.98 following an 86% surge during the first six months of 2026
- The Philadelphia Semiconductor Index trading 65% above its 200-day moving average represents a red flag last observed during the 2000 tech bubble
- A recent announcement about Korean technology investment was characterized as “the beginning of the end” for AI stock momentum
- Additional bearish positions include Palantir, while Burry has previously questioned Nvidia’s complex financing structures
Michael Burry, renowned for profiting from his prescient wager against subprime mortgages before the 2008 collapse, has unveiled new short positions targeting leading companies benefiting from the artificial intelligence stock surge.
Through a June 30 Substack publication, Burry announced bearish positions against Caterpillar, Nvidia, Tesla, Applied Materials, and the iShares Semiconductor ETF.
Burry established a short position in Caterpillar at $1,060.98, identifying it as among the market’s most overextended stocks riding the AI infrastructure wave. The heavy equipment manufacturer’s shares skyrocketed 86% during 2026’s opening half.
“Caterpillar caught my attention,” Burry explained. “I’ve never taken a short position in Caterpillar before. Historically, it’s been a profitable long investment for me.”
He published a chart illustrating Caterpillar’s price-to-sales multiple reaching unprecedented heights over the past thirty years, coinciding with the stock’s climb to all-time peaks.
Chipmaker Sector Concerns
The Philadelphia Semiconductor Index also raised alarm bells for Burry. According to his analysis, the benchmark was hovering approximately 65% above its 200-day moving average—a stretched valuation not witnessed since the dot-com mania two decades ago.
The price-to-sales multiple on the semiconductor index exceeded 16 times, even when Nvidia was excluded from calculations. “SOXX represents a concentrated example of index overvaluation,” he stated, suggesting a correction was inevitable “just a question of when.”
Burry adjusted his put option strategy on the semiconductor ETF, extending the expiration from January 2027 to March 2027, while simultaneously increasing the strike price from the $320–$350 range to above $400.
He initiated a short position in Nvidia at $198.09. Burry has historically described Nvidia’s financing mechanisms as “fugazi,” detailing how intricate arrangements involving insurance companies, reinsurance structures, and private lending institutions facilitate AI infrastructure capital deployment.
Electric Vehicle and Chip Equipment Plays
Burry revealed shorting Tesla at $416.22, noting: “Pleased it rebounded to this price point.” The specific position size was not made public.
Tesla has declined approximately 4% for the year despite recording an 11% weekly advance preceding Burry’s disclosed trade. Market participants have highlighted weakening electric vehicle demand and postponements in robotaxi services and autonomous driving technology as persistent headwinds.
Applied Materials received a short position at $729.40. Separately, Cantor Fitzgerald upgraded its price objective on the semiconductor equipment manufacturer to $850 from $650, maintaining its Overweight recommendation.
Burry maintains a bearish stance on Palantir as well, though specifics regarding that position remain limited.
He connected the latest AI stock surge partially to technology spending commitments from Korea. “That represents the beginning of the end in my view,” he commented.
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