This 'Big Short' Investor Is Taking The Plunge Into Infrastructure: 'There's Plenty Of Other Stories Other Than Tech'

Steve Eisman, the renowned investor famous for accurately predicting the 2008 financial crisis portrayed in the book and movie "The Big Short," is betting on U.S. infrastructure.

In an interview on Bloomberg's "Odd Lots" podcast on Friday, Eisman said that the so-called greenification initiatives introduced by recent local and federal policies could open the doors to a serious investing opportunity. 

"If anybody gave me their money today, for example, I wouldn't be so overweight tech. I'd be much more diversified. I'd have some, God forbid, bonds. There's plenty of other stories other than tech," he said. "For example, has anybody ever noticed that the electrical grid in the United States is pathetic?" 

"The estimates of improving the grid in the U.S. — everybody's got a different estimate, but it's like $200 billion, $300 billion — I mean, it's unbelievable numbers," he added.

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Citing Quanta Services Inc PWR, a utility stock, as an example, Eisman explained that the company witnessed significant opportunities leading to a re-evaluation of its stock. Shares of the company are trading at $187, marking an impressive 34% increase since the beginning of 2023.

Speaking about tech stocks, Eisman said that they are investable for a long time though it's unclear how they may move in the future.

On artificial intelligence — a technology that has propelled the soaring valuations of numerous mega-cap stocks — Eisman said it was too premature to identify the ultimate winners, adding that the focus of the AI conversation has primarily been on  computer chips that power AI with insufficient attention given to how the technology will be used.

"As of right now, the story is very narrow in terms of investing," he said.

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Photo: International Monetary Fund via flickr