Steve Eisman, the investor known for predicting the U.S. housing collapse before the crisis, says many investors are approaching AI stock selection incorrectly. In interviews and commentary reported by multiple outlets, Eisman argues that the market focus on high-profile or widely promoted AI companies can lead to mispricing and mismatched expectations. He suggests investors are not adequately distinguishing between businesses that capture real, durable economic value from AI-related demand and those whose prospects are overstated or dependent on near-term momentum. Eisman’s broader point is that the AI trade requires the same kind of careful analysis that he applied in earlier market cycles, including assessing underlying fundamentals rather than relying on thematic popularity. The reports emphasize that his comments are critiques of how the AI portfolio is being constructed, not a specific prediction that AI itself will fail. No common set of specific tickers or companies is agreed upon across the provided summaries, but both outlets attribute the same general message: investors are buying AI-related stocks using the wrong criteria.