Michael Burry, the investor famed for betting against the housing market before the 2008 financial crisis, has placed new short bets against major technology and industrial stocks. His latest targets include Tesla, Caterpillar, Applied Materials, and an exchange-traded fund focused on chip stocks.
Burry recently cited this move as a signal of what he called the “beginning of the end” for the artificial intelligence-driven market rally. The positions were disclosed in regulatory filings for the second quarter.
Tesla, the electric vehicle maker, has been a frequent target of Burry’s skepticism. He previously held a short position against the company in 2023 before closing it after a sharp decline in the stock price.
Caterpillar, the heavy equipment manufacturer, is also in Burry’s crosshairs. The company has seen its stock rise significantly in recent years due to infrastructure spending and AI-related demand for data center equipment.
Applied Materials, a key supplier of chip manufacturing equipment, faces exposure to a potential slowdown in semiconductor spending. Burry’s bet suggests he expects a correction in that sector.
The ETF of chip stocks, while not named in the filing, likely includes major semiconductor companies such as Nvidia and AMD. This move aligns with Burry’s broader view that AI enthusiasm has inflated valuations beyond sustainable levels.
Burry’s bets are notable for their timing, coming as the market continues to rally amid strong AI-related earnings. The filings do not reveal the size of his positions or how long he intends to hold them.
