Steve Eisman Warns Against Shorting Nvidia, Reveals Ownership of 'A Lot' of Shares

Steve Eisman of Neuberger Berman Group owns "a lot" of Nvidia shares and believes the company's story of being relevant for AI is intact and will continue for years. Nvidia shares rebounded 6.8% after falling over 10% in the prior three days, with traders agreeing with Eisman's long-term view. Eisman says shorting a stock solely due to valuation is risky, and people will buy an expensive stock if they believe in the company's story. Nvidia is up 155% this year and trades at a 50% premium to the Nasdaq 100. However, its price-to-earnings ratio has fallen to around 40x from a high of 63x.