'Big Short' Investor Steve Eisman Steers Clear Of AI Frenzy, Bets On Concrete Infrastructure Instead
Apr 08, 2024
Noted investor Steve Eisman, famous for his ‘Big Short’ bet, is now favoring infrastructure over AI investments. What Happened: Eisman, a senior portfolio manager at Neuberger Berman, expressed his views on the Odd Lots podcast on Saturday. He identified four key factors that will drive the infrastructure sector: AI, electric grid investing, industrial onshoring, and green energy, reported Business Insider. Eisman considers infrastructure a safer investment than AI, which he believes is concentrated in a few elite firms. He sees a genuine secular story in infrastructure, with cyclical elements and long-lasting secular tailwinds. “Everything else at this point seems to me to be hype, or potential and we don’t own those companies. We own what’s obvious,” he said. These tailwinds include the post-COVID shift towards onshoring as economies disentangle, which Eisman predicts will be a decade-long development. The industrial implications of AI, with new microchip technology requiring more electricity, will also boost electric grid improvements and spending. See Also: Full story available on Benzinga.com
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