"The Big Short" prototype highly recommends technology stocks, stating that there is no reason to short US stocks
The Big Short prototype highly recommends technology stocks, believing that artificial intelligence will drive strong performance in the tech sector. He pointed out that people are interested in new AI applications, which will drive device upgrades, leading to the largest upgrade cycle in history. He believes that large tech stocks such as Apple, Nvidia, Microsoft, and Oracle will benefit from this. He also predicts that Trump will win the election in November. Although he believes that the US economy is slowing down, the overall outlook is good, and there is no reason to heavily short stocks. As for Tesla, he mentioned that shorting it has become impossible because the market is focused on its robotaxis and AI ambitions
Steve Eisman of Neuberger Berman Group expects that the strong performance of large US tech stocks will "continue for years" as artificial intelligence makes it easier for consumers to adopt electronic devices.
In an interview on Thursday, he stated that people will want to use new AI applications on their phones and personal computers, driving the "largest upgrade cycle in history" as they purchase upgraded devices.
Eisman said, "You have to own large tech stocks. This demand will continue to benefit companies like Apple, Nvidia, Microsoft, and Oracle. While Nvidia's high valuation may be seen as expensive, it's not a problem as its earnings have tripled."
Eisman's remarks have drawn attention on Wall Street, as he gained fame for shorting subprime bonds before the global financial crisis. He mentioned that he owns "a lot" of Nvidia stock and believes that the stock's "narrative" will continue for years.
Amid the Biden presidential campaign crisis and Trump's bid for the Republican nomination, he also made a political prediction: regardless of whether Biden remains on the Democratic candidate list, Trump will win in November.
Although he was known for shorting mortgage loans during the financial crisis, Eisman stated that he never shorts for clients but occasionally does it for himself. He mentioned, "The US economy is slowing down, but the overall outlook is good. There is no fundamental reason to heavily short stocks."
"I once predicted doomsday, which was bad for everyone," he said. "I don't want to predict it again, and there is no data showing it will happen."
Regarding Tesla, Eisman mentioned that when the fundamentals deteriorate, it is sometimes possible to short this electric car manufacturer. However, he noted that the market is currently focused on the company's robotaxis and AI ambitions rather than investment fundamentals, making shorting nearly impossible.