Michael Burry initiates first-ever short position in Caterpillar after AI rally
Michael Burry, the investor who became a household name for predicting the 2008 housing crash, is now betting against Caterpillar for the first time in his career. The move represents his latest salvo against what he sees as an overheated AI market that has inflated valuations well beyond reason.
“Caterpillar jumped out at me,” Burry said. “I have never shorted Caterpillar.”
CAT shares surged nearly 100% during the 2026 AI rally, peaking near $1,061 before Burry decided to go short.
The broader Burry playbook against AI
Caterpillar isn’t an isolated bet. As of June 30, 2026, Burry has also increased short positions on NVIDIA, Tesla, and Applied Materials.
In Q3 2025, Scion held put options on 5 million shares of Palantir, representing roughly $912 million in notional value, alongside puts on 1 million NVIDIA shares worth approximately $187 million notional. Combined, those two bets alone were worth around $1.1 billion in exposure.
Burry has specifically called out companies like Oracle, Google, and Microsoft for their aggressive data center buildouts, warning that the financial risks of such heavy capital consumption are being ignored by a market drunk on AI optimism. Burry has explicitly drawn comparisons between the current AI rally and the dot-com bubble of 1999-2000.
Why Caterpillar specifically
Caterpillar is not an AI company. It builds heavy machinery for construction, mining, and energy. But the massive data center construction boom, driven by hyperscalers racing to deploy AI infrastructure, has created a surge in demand for exactly the kind of earth-moving equipment Caterpillar sells. The market priced in that benefit aggressively, nearly doubling the stock.
The absence of a confirmed 13F filing for the Caterpillar short as of June 30, 2026, means investors are working with commentary and social media signals rather than verified regulatory disclosures. Scion’s next 13F filing will provide harder data on the exact size and structure of the position.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
CoreWeave's surge gives AI cloud a breather, now all eyes are on the Anthropic IPO and Nvidia
CoreWeave’s Q3 revenue and guidance both exceeded expectations, with its stock price surging 25% in a single day and the new cloud sector soaring over 12%. Reports of Anthropic’s potential $1.5 trillion IPO valuation, OpenAI’s quarterly revenue surpassing $10 billion for the first time, and these three positive catalysts together have boosted confidence in the AI computing power industry chain, which was previously troubled by doubts about AI returns. Next week’s Nvidia earnings report and Anthropic’s IPO will be the true test of whether this rally can continue.
AI Computing Power and Semiconductors Stage a Strong Rebound—Why Is Wall Street Cautious About U.S. Stocks? Key Indicators Reveal the Bottom Hasn't Been Reached
The sharp volatility in the US stock market has prompted investors to carefully analyze various data to determine whether the sell-off has ended. Early indicators suggest that it may be too soon to declare that the market has resumed its normal upward trajectory.
Nvidia (NVDA.US) Governance Crisis Escalates: Jensen Huang Exposed for Another Affair, Board Considers Dismissal, and Wall Street Begins Pricing in a “No Jensen” Scenario
The world's most valuable semiconductor company is experiencing the most severe corporate governance crisis since its establishment.
Crypto prices
More
