Steve Eisman sold his long-held Alphabet position on July 27, 2026. The Big Short investor announced the decision on CNBC. He clarified the move targets artificial intelligence sector risk rather than Google's business fundamentals.
Eisman warned that the market has converged into a single AI trade. He argued that AI-related capital spending now heavily influences both equities and corporate bonds. This correlation renders traditional portfolio diversification an illusion.
The market faces a sharp downturn if any major tech hyperscaler reduces AI capital expenditures.