Key Highlights
- The famed investor disclosed bearish bets against Tesla, Nvidia, Caterpillar, Applied Materials, and a semiconductor ETF
- Caterpillar became a short target at $1,060.98 following an 86% surge during 2026’s first six months
- The Philadelphia Semiconductor Index currently trades 65% above its 200-day moving average, matching levels last witnessed during the 2000 tech bubble
- Korean technology spending initiatives were described as signaling “the beginning of the end” for AI-driven market gains
- Additional bearish positions include Palantir, while past commentary has targeted Nvidia’s financial structures
Michael Burry, renowned for profiting from the 2008 subprime mortgage crisis, has unveiled new bearish positions aimed at prominent companies riding the artificial intelligence market surge.
Through a June 30 Substack publication, Burry announced short trades targeting Caterpillar, Nvidia, Tesla, Applied Materials, and the iShares Semiconductor ETF.
His short position in Caterpillar was initiated at $1,060.98, describing the heavy equipment manufacturer as among the most inflated stocks benefiting from AI infrastructure investments. The company’s shares had soared 86% during the initial six months of 2026.
“Caterpillar stood out significantly,” Burry noted. “I’ve never previously taken a short position in Caterpillar. Historically, it has delivered strong returns for me on long positions.”
He presented data illustrating Caterpillar’s price-to-sales multiple reaching unprecedented heights over the past thirty years, coinciding with the stock’s all-time peaks.
Chip Sector Concerns
Burry highlighted the Philadelphia Semiconductor Index as particularly troubling. According to his analysis, the benchmark currently sits approximately 65% above its 200-day moving average, territory last explored during the 2000 internet bubble collapse.
The index’s price-to-sales ratio exceeds 16 times, even when removing Nvidia from calculations. “SOXX represents pure index overvaluation in its truest form,” he stated, suggesting a correction is merely “a matter of time.”
Burry adjusted his put options on the semiconductor ETF, extending expiration from January 2027 to March 2027, while simultaneously elevating strike prices from the $320–$350 range to above $400.
He initiated a short position in Nvidia at $198.09. Previously, Burry characterized Nvidia’s financing mechanisms as “fugazi,” detailing how intricate arrangements involving insurance companies, reinsurance operations, and private lending firms facilitate AI infrastructure funding.
Electric Vehicle and Chipmaking Equipment Shorts
Burry revealed shorting Tesla at $416.22, commenting: “Pleased it rebounded to this price point.” Specific position sizing was not disclosed.
Tesla has declined approximately 4% year-to-date despite recording an 11% weekly advance preceding Burry’s transaction. Market participants have identified weakening electric vehicle demand and postponements in robotaxi and autonomous driving deployments as persistent challenges.
Applied Materials was similarly shorted at $729.40. Separately, Cantor Fitzgerald upgraded its price objective on the semiconductor equipment manufacturer to $850 from $650, maintaining an Overweight recommendation.
Burry maintains a bearish stance on Palantir as well, though he offered limited specifics regarding that trade.
He connected the recent AI market rally partially to South Korean technology investment declarations. “I interpret that as the beginning of the end,” he commented.
