Steve Eisman: Big tech dominance to continue, predicts Trump victory

Investing.com - In interview with Bloomberg Television on Thursday, Steve Eisman, a senior portfolio manager at Neuberger Berman Group, expressed his belief in the continued dominance of US megacap technology shares for years to come. He predicts this trend will be driven by the increasing accessibility of artificial intelligence (AI) through consumer electronics.

Eisman, known for his successful "Big Short" bet against subprime mortgages before the global financial crisis, suggests that consumers' desire for new AI applications on smartphones and personal computers will trigger the "biggest refresh cycle in history." This wave of upgraded device purchases will likely benefit tech giants like Apple Inc (NASDAQ: AAPL)., NVIDIA Corporation (NASDAQ: NVDA), Microsoft Corporation (NASDAQ: MSFT), and Oracle Corporation (NYSE: ORCL).

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Despite Nvidia's high valuation, Eisman is not concerned. He points out that the company's earnings have tripled, making it a sound investment. Eisman has previously disclosed that he owns a substantial amount of Nvidia shares.

Eisman also shared his views on the broader economy, stating that although it's slowing down, the situation is stable. He sees no fundamental reason to short stocks significantly.

Reflecting on his past experiences, Eisman said, "I predicted the end of the world once — it was pretty awful for everybody. I have no interest in predicting it again and there's no data to show that it's going to happen."

Regarding Tesla (NASDAQ: TSLA) Inc., Eisman believes there are times to short the company when fundamentals are deteriorating. However, he concedes that this becomes challenging when investors focus on Tesla's self-driving car and AI ambitions rather than its fundamentals. Eisman clarified that while he doesn't short for his clients, he occasionally does so on a personal basis.

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