Steve Eisman, the hedge fund manager known for his early bets against the housing market, has sold a significant position in a major technology stock, citing mounting doubts about the sustainability of the artificial intelligence boom.
The move marks a visible shift in sentiment from one of Wall Street’s most prominent skeptics, who warns that investors are underestimating the risks if AI investments fail to generate the expected returns.
Eisman’s decision to exit the position comes as broader market sentiment turns cautious.
US equity futures traded lower in early Thursday sessions, with Nasdaq 100 contracts declining by 0.6%.
This weakness persisted despite strong second-quarter results from TSMC, which had raised its full-year outlook, suggesting that positive corporate earnings are no longer sufficient to offset broader concerns about valuation and capital efficiency.
The selling pressure reflects a growing debate among institutional investors regarding the massive capital expenditure commitments made by major technology firms.