The paper presents a theoretical method to investigate the multiple scattering of shear waves and dynamic stress around a circular cavity in a semi-infinite functionally graded piezoelectric material. The analytical solutions of wave fields are expressed by employing wave function expansion method and the expanded mode coefficients are determined by satisfying the boundary conditions of the cavity. Image method is used to satisfy the free boundary condition of the semi-infinite structure. According to the analytical expression of this problem, the numerical solutions of the dynamic stress concentration factor around the cavity are presented. The effects of the piezoelectric property, the buried depth of the cavity, the incident wave number and the nonhomogeneous parameter of materials on the dynamic stress around the cavity are analyzed. Analyses show that the piezoelectric property has great effect on the dynamic stress in the region of intermediate frequency and the effect increases with increasing wave number. When the nonhomogeneous parameter of materials is less than zero, it has less influence on the maximum dynamic stress around the cavity; however, it has greater influence on the distribution of the dynamic stress around the cavity. When the nonhomogeneous parameter of materials is greater than zero, it has greater influence on both the maximum dynamic stress and the distribution of dynamic stress around the cavity, especially in the case that the buried depth is comparatively small.