Michael Burry bets against AI‑linked stocks while going long on Microsoft

Investor Michael Burry, famed for his 2008 short on the US housing market, disclosed a series of new short positions targeting companies tied to the artificial‑intelligence rally. He shorted Caterpillar for the first time ever, saying “Caterpillar jumped out at me,” and added shorts on NVIDIA, Tesla (at $416.22), Applied Materials and the iShares Semiconductor ETF (SOXX), warning that valuations are “overheated” and likening the surge to the dot‑com bubble.

At the same time, Burry took a bullish stance on Microsoft, purchasing December 2028 LEAP call options with a strike in the low $700s. He described the current $350 price level as “a good place to buy,” expecting the stock could double within two to three years. The contrasting bets illustrate his view that AI‑related hardware and semiconductor stocks are overvalued, while he sees long‑term upside in the software giant.

These moves were announced in a Substack post on June 30, 2026 and have drawn attention from traders monitoring potential shifts in AI‑driven market sentiment.