Michael Burry Shorts Caterpillar for the First Time After Stock's AI Rally
Famed investor Michael Burry has taken his first-ever short position on Caterpillar after the stock nearly doubled during the AI-driven rally of 2026.
Legendary investor Michael Burry, best known for predicting the 2008 housing collapse, has placed a short bet against Caterpillar for the first time in his career, targeting the industrial giant after its shares nearly doubled amid the AI-driven market rally of 2026. Burry disclosed the position publicly, marking a significant strategic shift in how he views one of America's most iconic heavy-equipment manufacturers.
"Caterpillar jumped out at me," Burry said, acknowledging the unusual nature of the trade. "I have never shorted Caterpillar. It has always done great for me on the long side in the past." The candid admission underscores just how dramatically the stock's recent surge has altered his calculus — transforming a former long-side favorite into what he now sees as an overvalued target.
Read more Apple Remains a Core Warren Buffett Long-Term Stock Pick →
Burry's decision reflects a broader skepticism that some contrarian investors hold toward stocks that have surged on AI-adjacent enthusiasm rather than direct AI revenue or earnings growth. Caterpillar, while a legitimate beneficiary of infrastructure spending, has seen its valuation stretched by the same wave of optimism lifting technology and industrial names alike during the current cycle.
The short bet carries meaningful risk given Caterpillar's entrenched position in global construction and mining markets, but Burry has never shied away from high-conviction, high-risk trades — his 2008 mortgage short being the defining example. Whether the company's fundamentals can justify its post-rally price will now be closely watched by both bulls and the growing chorus of skeptics aligning with Burry's view.
Continue reading at US Top News and Analysis.
