Michael Burry, the investor who famously called the 2008 housing crash, is back in the news with a new set of bearish bets. His latest regulatory filing shows he's shorting some of the biggest names in AI and infrastructure: Nvidia Corp (NVDA), Caterpillar Inc. (CAT), Tesla Inc. (TSLA), and Applied Materials Inc (AMAT). It's a basket that spans AI chips, semiconductor equipment, electric vehicles, and the physical infrastructure powering the AI boom.
While Burry's positions target individual stocks, the ripple effects could be much broader. These four names are core holdings in some of the market's most popular ETFs, from semiconductor funds to industrial ETFs that have quietly become AI plays. If Burry's valuation concerns prove right, ETF investors might feel the heat too.
AI ETFs Have Nvidia at the Center
Nvidia is the cornerstone of nearly every AI-focused ETF, making it the biggest common denominator in Burry's bearish basket. The VanEck Semiconductor ETF (SMH) and the iShares Semiconductor ETF (SOXX) both count Nvidia among their largest holdings, alongside Applied Materials—another stock Burry is betting against. While Nvidia has fueled the semiconductor rally, Applied Materials has ridden the wave of demand for chip fabrication equipment as foundries race to expand AI capacity.
Broad technology funds are also exposed. The Invesco QQQ Trust (QQQ) holds Nvidia and Tesla among its top positions, while the Roundhill Magnificent Seven ETF (MAGS) includes both as two of its seven constituents.
Caterpillar Brings Industrial ETFs Into the AI Conversation
Perhaps the most surprising name in Burry's portfolio is Caterpillar. Unlike Nvidia or Applied Materials, Caterpillar isn't a tech company. But investors have increasingly rewarded the heavy equipment maker as a key beneficiary of the AI infrastructure boom. Every new hyperscale data center, semiconductor fab, and power project starts with excavation and construction, putting Caterpillar's machinery at the heart of the AI supply chain.
That narrative has pushed Caterpillar's valuation multiples above even Nvidia's on a trailing earnings basis. The stock is a significant holding in industrial ETFs like the Global X Dow 30 Covered Call ETF (DJIA), SPDR Dow Jones Industrial Average ETF Trust (DIA), Industrial Select Sector SPDR Fund (XLI), and Vanguard Industrials ETF (VIS), giving investors indirect exposure to the AI construction boom.
ETFs With Exposure to Burry's Bearish Basket
| ETF | Nvidia | Applied Materials | Tesla | Caterpillar | Primary Theme |
|---|
| VanEck Semiconductor ETF (SMH) | ✓ | ✓ | — | — | Semiconductors |
| iShares Semiconductor ETF (SOXX) | ✓ | ✓ | — | — | Semiconductor ecosystem |
| Invesco QQQ Trust (QQQ) | ✓ | ✓ | ✓ | — | Mega-cap technology |
| Roundhill Magnificent Seven ETF (MAGS) | ✓ | — | ✓ | — | Magnificent Seven |
| Industrial Select Sector SPDR Fund (XLI) | — | — | — | ✓ | Industrials |
| Vanguard Industrials ETF (VIS) | — | — | — | ✓ | Industrial sector |
Rather than signaling skepticism toward artificial intelligence, Burry's latest positions appear to target the lofty valuations attached to companies riding the AI investment cycle. For ETF investors, that means looking beyond semiconductor funds and recognizing that AI exposure now extends to industrials, infrastructure, and other sectors that have benefited from the data center and semiconductor investment boom.
