Eisman Sells Google After Stock Falls 20%, Warns Market Is 'One AI Trade'

According to CNBC, Steve Eisman, the investor who shorted the 2008 housing market, sold his long-held Google position a couple of months ago to reduce his artificial intelligence (AI) exposure. Alphabet stock declined from its record high of $408.61 on May 18 to $319.74 by July 24—a drop of roughly 20%.

Eisman warned that the entire market has become "one trade" concentrated around AI. He said investors either want to buy AI or nothing else, so defensive stocks offer no safety. He is holding cash and does not expect the AI debate to settle soon. According to Bank of England data cited in the article, five AI hyperscalers accounted for over 15% of U.S. investment-grade bond issuance by early May 2026, up from just 3% of outstanding debt at end-2025, underscoring the market's heavy concentration in AI-related technology.