Investing in the age of artificial intelligence has taken on a new twist, according to Steve Eisman, the senior portfolio manager at Neuberger Berman and the investor famous for his role in “The Big Short.” Eisman recently shared a new thesis on how the AI boom could potentially impact software companies in the industry.
In a recent appearance on CNBC’s “Squawk Box,” Eisman highlighted the potential for AI to disrupt the software industry by driving down the costs of creating software. This, in turn, could weaken the competitive moats that some software companies have built around their businesses, leading to a potential revaluation of the sector as hardware purchases increase to support AI growth.
While the idea is still in its early stages, Eisman sees it as a long-term thesis that could have significant implications for the industry. As a seasoned investor known for his successful predictions, Eisman’s insights into the potential effects of AI on the software industry are worth paying attention to.
Eisman has also been keeping a close eye on how AI is impacting the market, recently identifying Apple as a “hidden AI play.” He noted that Apple is well-positioned to benefit from AI as it integrates new AI-powered applications into its products. With Apple’s recent announcement of plans to expand its use of generative AI technology across its devices, Eisman’s insights into the potential growth opportunities for tech giants like Apple, Microsoft, Oracle, Google’s Alphabet, and Meta are particularly intriguing.
As investors navigate the evolving landscape of AI and its impact on the software industry, staying informed on emerging trends and potential investment opportunities is key. At Extreme Investor Network, we’ll continue to provide unique insights and analysis to help you make informed decisions in this dynamic market environment. Subscribe to our newsletter and join our community of savvy investors to stay ahead of the curve.