BlockBeats News, July 1st - Michael Burry, the original character and investor famous for successfully shorting the U.S. real estate market, stated that he has shorted Caterpillar. He believes that this construction equipment manufacturer has become one of the beneficiaries overvalued in the AI investment frenzy. Burry said he shorted Caterpillar stock at a price of $1060.98, while also shorting Nvidia, Applied Materials, Tesla, and the iShares Semiconductor ETF (SOXX), preparing for what he believes to be an increasingly overextended rally in AI-related stocks. In a Substack post, Burry wrote: "Caterpillar caught my eye. I have never shorted Caterpillar. In the past, from the long side, it has always rewarded me well."

Caterpillar's stock price rose 86% in the first half of 2026, making it one of the best-performing stocks in the S&P 500 this year. As investors increasingly see it as a proxy target for global AI infrastructure development, Caterpillar's stock price has surged. Burry stated that the stock's valuation has reached a level of concern for him and shared a chart showing that Caterpillar's P/E ratio has reached its highest level in at least 30 years, while the stock price hit a record high.

Burry also reiterated his concerns about semiconductor valuations. He stated that the Philadelphia Semiconductor Index is currently about 65% above its 200-day moving average, a level that has only been seen during the 2000 internet bubble. Burry said: "The direct cause of today's rise is the massive spending announced by South Korea. Well, I think this is the beginning of the end. It's just a matter of time now."