Michael Burry says he's shorting Caterpillar for the first time after it nearly doubled in the AI-driven rally of 2026

According to CNBC, legendary short-seller Michael Burry is taking his first-ever short position on Caterpillar. The stock has nearly doubled during the two thousand twenty-six AI rally. Burry, who correctly predicted the housing crisis, says Caterpillar has become significantly overvalued. Notably, the equipment maker has been one of his most profitable long positions historically, making this shift remarkable. His move suggests deep skepticism about whether the artificial intelligence boom can justify the stock's current valuations.

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