Michael Burry expands short bets against Applied Materials amid semiconductor cycle uncertainty.

Michael Burry, the investor famous for his 2008 bet against subprime mortgage securities, has disclosed a fresh wave of short positions targeting major beneficiaries of the AI boom. On June 30, he placed bets against Tesla at $416.22, Caterpillar at $1,060.98, Applied Materials at $729.40, Nvidia at $198.09, and the iShares Semiconductor ETF (SOXX) at $642.80—wagering that these stocks will decline.

Burry's targets extend beyond the obvious AI plays. While Nvidia and Applied Materials are direct semiconductor beneficiaries, his inclusion of Caterpillar is more provocative. The heavy equipment manufacturer, traditionally associated with construction, has become a beneficiary of AI-driven spending. The stock surged roughly 86% in the first half of 2026, and its price-to-sales ratio has reached a 30-year high, according to Burry's analysis shared on his Substack.

The semiconductor sector presents similar warning signs. SOXX was trading 65% above its 200-day moving average at the time Burry executed his trade—a historically unusual level of overextension. Tesla occupies a unique position as both an automotive and AI/robotics company; Burry's short at $416.22 suggests he believes the stock's AI premium is overstated.

Burry's pattern of skepticism toward elevated tech valuations is consistent and long-standing. These June 30 disclosures represent a meaningful expansion of that thesis. Notably, he disclosed the trades via Substack the same day they were executed, bypassing the typical lag of quarterly 13F filings.

A 30-year high in Caterpillar's price-to-sales ratio does not predict an imminent decline, but it indicates minimal room for error. Any disappointment in AI-related capital spending could trigger sharp repricing, catching momentum-driven investors off guard. Similarly, SOXX's 65% premium above its 200-day moving average is historically unusual and has often, though not always, preceded meaningful pullbacks.