Michael Burry Opens First Short on Caterpillar After the Stock Nearly Doubles in the 2026 AI Rally

Michael Burry has disclosed a short position in Caterpillar (CAT), marking the first time he has bet against the industrial equipment maker. The trade followed Caterpillar's near-doubling during the AI-driven market rally of 2026 — the move Burry said was what made the stock jump out at him. He framed the position as a break from form: Caterpillar has always worked for him as a long, and he has never previously shorted it.

A Stock That Had Only Ever Rewarded Him Long

Burry's prior trades in Caterpillar were exclusively long-side, and by his own account they consistently paid off. The decision to flip to the short side — and to say so publicly — signals that he views the rally-driven appreciation as an overshoot specific to this name, not a broad market thesis.

The AI-Rally Near-Double as the Entry Point

The AI-driven rally of 2026 pushed Caterpillar shares to nearly double their prior value, and Burry identified that appreciation as the catalyst for the trade. A stock he had only wanted to own on the way up became, in his view, a setup worth shorting. He did not disclose the size or structure of the position.