'Big Short' Fame Steve Eisman Says Nvidia's 'Best Days Are Not Behind It' But Trump Is The Wild Card In Current Market

Renowned investor Steve Eisman continues to bet big on Artificial Intelligence, unfazed by current valuations in the segment, or tariff-related uncertainties.

What Happened: On Tuesday, Eisman the former Senior Portfolio Manager at Neuberger Berman told CNBC’s “Squawk Box” that he has “taken some risk down” from his personal portfolio and is just waiting as he expects volatility to be there for “quite a while,” before adding that he wasn’t “trying to be a hero” in this market.

When asked about what was in his portfolio, that he thinks would work well over the next 3 to 5 years, Eisman dropped the names of semiconductor giant Nvidia Corp. NVDA and private equity firm Apollo Global Management APO, citing their “strong long term fundamentals” and adding that “if you can stick with them you can make money.”

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However, the former fund manager admitted that he would not even “hazard a guess on what any stock would do over the next few months,” because the only variable in this market is President Donald Trump, and he cannot “handicap that right now.”

Regarding Nvidia’s valuations, Eisman states that he is quite convinced that we are in the “very early innings of the AI revolution” and that the company’s “best days are not behind it.” While he concedes that the $2.7 trillion company cannot grow at the same pace as it has in the past, he still thinks it is one of the best “long-term stories out there.”

Why It Matters: While he has always been bullish on AI, this statement from Eisman comes just a week after he signaled a shift away from the sector, in favor of infrastructure, which he believed was safer compared to the concentrated nature of AI, with only a handful of elite firms at play.

The fund manager who rose to prominence following his “Big Short” bet against collateralized debt obligations in the lead-up to the 2008 Financial Crisis has constantly raised concerns about subsequent market bubbles, such as during the Fed’s rate cuts last year, and in January this year, amid rising market optimism.

Photo Courtesy: Piotr Swat on Shutterstock.com

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