Woofun AI reports that Michael Burry disclosed new short positions in his Substack column 'Cassandra Unchained' on June 30, 2026, targeting Caterpillar at $1060.98 alongside major AI infrastructure names. The hedge fund manager initiated the Caterpillar trade after the engineering machinery manufacturer surged 86% in the first half of 2026, despite its price-to-sales ratio hitting a 30-year high.

Burry classified Caterpillar as an unjustified AI 'shovel stock' and simultaneously established shorts on Nvidia at $198.09, Applied Materials at $729.40, the Philadelphia Semiconductor Index ETF (SOXX) at $642.80, and Tesla at $416.22. He argued the AI rally has become dangerous, noting the Philadelphia Semiconductor Index (SOX) sits more than 65% above its 200-day moving average, a deviation historically observed only at the 2000 dot-com bubble peak.

Woofun AI data shows the semiconductor index's P/E ratio now exceeds 16 times, reinforcing Burry's view that valuations are detached from fundamentals. To capitalize on this potential collapse, he extended put options on SOXX from January 2027 to March 2027, raising the strike price to just above $400 while maintaining put options on the Nasdaq ETF (QQQ) for January.

Regarding Tesla, Burry executed a short during an intraday uptick, criticizing the company's share dilution and excessive stock-based compensation which he labeled the 'King of the Tragic Layer'. This marks a continuation of his bearish stance adopted in Q3 2025, where he held significant put options on Palantir and NVIDIA.

Burry warns that the market is ignoring financial risks tied to heavy capital expenditure driven by AI optimism, drawing direct parallels to the 1999-2000 internet bubble. As of publication, no confirmed 13F filing exists for the Caterpillar short, with all details derived from Burry's column and social media posts.

This aggressive positioning suggests a conviction that the current AI-driven valuation expansion is unsustainable and poised for a severe correction similar to previous historical bubbles.