Steve Eisman, the investor immortalized in The Big Short for predicting the 2008 housing market crash, is expressing doubts about artificial intelligence and has sold a key tech stock. In December 2025 on CNBC, he warned that performance improvements in large language models would slow as they scale. By June 2026, he criticized hyperscalers like Alphabet and Microsoft for spending billions without the competitive moats needed to justify those expenditures. His preferred strategy targets infrastructure providers like Nvidia over application builders. He also compared SpaceX’s anticipated IPO valuation to that of Kellogg’s cereal company to illustrate the disconnect between certain tech valuations and underlying business fundamentals.
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