The famed investor said he shorted Caterpillar shares at $1,060.98, alongside new bearish positions in Nvidia<\/a>, Applied Materials<\/a>, Tesla<\/a> and the iShares Semiconductor ETF (SOXX), as he prepared for what he believes is an increasingly overextended rally in AI-linked stocks.<\/p>\n “Caterpillar jumped out at me,” Burry wrote in a Tuesday SubStack post<\/a>. “I have never shorted Caterpillar. It has always done great for me on the long side in the past.”<\/p>\n Caterpillar shares just capped off the first half of 2026 with an 86% gain, making the construction equipment giant one of the best-performing stocks in the S&P 500 this year as investors increasingly embraced it as a proxy for the global AI infrastructure buildout.<\/p>\n Stock Chart IconStock chart icon Caterpillar year to date<\/p>\n Burry said Caterpillar’s stock valuation has reached levels that caught his attention. He shared a chart showing Caterpillar’s price-to-sales ratio climbing to the highest level in at least three decades at the same time as the stock surged to record highs.<\/p>\n The investor, who famously predicted and profited from the subprime mortgage crisis in 2008, also reiterated his broader concerns about semiconductor valuations. He said the Philadelphia Semiconductor Index<\/a> is trading about 65% above its 200-day moving average, a level he said was only reached previously during the dot-com bubble in 2000.<\/p>\n “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.”<\/p>\n![\"hide](\"https:\/\/static-redesign.cnbcfm.com\/dist\/a54b41835a8b60db28c2.svg\")
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