Caterpillar also trades at over 31x EV/EBITDA, providing a significant premium over industrial equipment peers such as Cummins, which trades at 19.51x. Michael Burry of Scion Asset Management made a high-profile action in response to the significant valuation disparity. On June 30, Burry reported a new short position in Caterpillar Inc. (NYSE:CAT) at $1,060.98 per share, describing the stock’s steep AI-driven advance as an overinflated value bubble. Michael Burry’s short entry at $1,060.98 accurately recognizes a cyclical peak in which AI confidence has entirely surpassed underlying earnings sustainability. While we acknowledge the risk and potential of CAT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame.