Caterpillar Slides Nearly 7% After Burry Opens First Short
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Caterpillar Slides Nearly 7% After Burry Opens First Short Khac Phu Nguyen Thu, July 2, 2026 at 8:57 AM EDT 1 min read CAT This article first appeared on GuruFocus . Caterpillar ( NYSE:CAT ) shares pulled back nearly 7% Wednesday after Michael Burry ( Trades , Portfolio ) said he had opened his first short position in the industrial giant. The stock had just closed at an all-time high of $1,064.90, with Burry announcing a short position at $1,060.98. The move came after Caterpillar rallied more than 150% over the past 12 months, partly as investors linked its power equipment business to the AI data-center buildout. Is CAT fairly valued? Test your thesis with our free DCF calculator. Burry's warning also extended beyond Caterpillar, as he disclosed short positions in Nvidia ( NASDAQ:NVDA ), Applied Materials ( NASDAQ:AMAT ), the iShares Semiconductor ETF ( NASDAQ:SOXX ), and Tesla ( NASDAQ:TSLA ). With the exception of Tesla, those securities declined Wednesday. Applied Materials dropped more than 11% after gaining nearly 150% this year, SOXX fell more than 6% after doubling this year, and Nvidia slid 3.3% before trimming losses. The broader concern is that AI-linked stocks could be running ahead of fundamentals after chip shares posted a sharp rally. The Philadelphia Semiconductor Index rose 88% in the second quarter and 101% in the first half, putting it on pace for what could be its strongest year. Burry called SOXX a rare form of index overvaluation and pointed to the chip index's unusually high extension above its 200-day moving average, while his Tesla short appears to build on earlier concerns around valuation and potential shareholder dilution.
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