Under the promotion of the AI infrastructure boom, the valuation has reached a 30-year high! Cater's Incorporated Beler (CAT.US) becomes the latest target of "big short" Burry.

The protagonist of "The Big Short," Michael Burry, stated on Tuesday that he has established a short position in Caterpillar Inc. (CAT.US) and believes that this construction machinery manufacturer has become one of the highest-valued beneficiaries in the artificial intelligence (AI) investment frenzy. Burry wrote in an article published on the SubStack platform on Tuesday: "Caterpillar Inc. immediately caught my attention." "I have never shorted Caterpillar Inc. before. In the past, being long on this stock has been very profitable for me." As more investors increasingly view Caterpillar Inc. as a representative target for global AI infrastructure construction, the stock just completed the first half of 2026 with an 86% increase in performance, reaching a historical high, and becoming one of the best performing stocks in the S&P 500 index. Burry mentioned that the current valuation of Caterpillar Inc. has reached a level of high concern for him. He shared a chart showing that while the stock price hit a historical high, the price-to-sales ratio of Caterpillar Inc. has risen to the highest level in at least the past 30 years. Providing equipment and power support, Caterpillar Inc. has been favored by investors as a key beneficiary of AI infrastructure construction. Goldman Sachs Group, Inc. estimates that by 2031, global capital expenditure related to AI could reach $1.6 trillion, and traditional industrial companies like Caterpillar Inc. will continue to benefit from data center construction and infrastructure expansion. Caterpillar Inc.'s first-quarter financial report released at the end of April showed a 22% year-on-year increase in revenue to $17.42 billion, higher than the market's average expectation of $16.61 billion. The core construction equipment and power energy businesses both showed strong growth, with demand for equipment supporting AI data centers being a highlight. Revenue from the power and energy segment increased by 22%. This segment sells generators, engines, and gas turbines, widely used in industrial facilities and large data centers. Over the past year, as AI infrastructure construction has accelerated, the demand for power in data centers has surged, leading to a shortage of Caterpillar Inc.'s power equipment and driving continued volume growth in this business. Additionally, Burry has also established short positions in NVIDIA Corporation (NVDA.US), Applied Materials (AMAT.US), Tesla, Inc. (TSLA.US), and the iShares Semiconductor ETF (SOXX). He is preparing for what he sees as an increasingly overextended rally in AI concept stocks. As a famous investor known for successfully predicting the 2008 subprime crisis and profiting from it, Burry also reiterated his overall concerns about the valuation of the semiconductor sector. He stated that the Philadelphia Semiconductor Index is currently about 65% above its 200-day moving average, a level that had only appeared during the 2000 dot-com bubble. Burry said, "The direct reason driving this current rally is South Korea's announcement of a massive spending plan. But in my view, this actually signals the beginning of the end." "It's just a matter of time." After spending several years out of the public eye, Michael Burry returned to the public eye in November last year. He had previously warned multiple times about the tech valuations in the US stock market being driven by an AI-driven bubble. He also disclosed short positions in NVIDIA Corporation and Palantir (PLTR.US), while accusing major AI spenders of making untrue statements about the depreciation of their data center assets. In April of this year, Burry wrote on the Substack platform that he had established a new short position by buying put options on the iShares Semiconductor ETF (SOXX). In May, Burry once again issued a warning about the current AI-driven US stock market, stating that the market environment had reached a dangerous stage similar to historical speculative bubbles and advised investors to reduce their exposure to tech stocks.