An investor featured in *The Big Short* has reduced his stake in Google. He does not rule out a market correction.

Investor Steve Eisman, who rose to fame thanks to the movie *The Big Short*, said he had reduced his exposure to artificial intelligence by selling his shares in Alphabet. He warned that investors may be underestimating the risks if the AI boom fails to live up to the market’s inflated expectations, according to CNBC.

“I’ve reduced my holdings. A couple of months ago, I sold my Google shares. I owned Google—I can’t even say for how long,” Eisman said on CNBC’s *Squawk Box* on July 27. “I wanted to reduce my exposure to AI.”

When asked what would happen if AI didn’t succeed, Aisman replied: “I think we’re in for a serious correction.” Aisman emphasized that he isn’t betting against the market as a whole, but he is concerned about investors’ excessive focus on a single theme.

“It’s all the same bet,” he said. “Even people who believe their portfolio is diversified—since 60% is in stocks and 40% is in bonds—overlook the fact that, in reality, there is no diversification. More than 50% of the portion of the portfolio invested in stocks is tied to technology and AI, and a significant portion of new bond issuances within the remaining 40% is also tied to AI. It scares me that this is all one bet.”

The investor said that he currently holds a significant portion of his funds in cash and has not yet decided where to invest them.

Last week, Alphabet’s stock fell nearly 8% after the company raised its capital expenditure forecast due to investments in AI infrastructure, according to CNBC. Several analysts advised investors to take advantage of the dip.

For example, on July 27, the investment firm Phillip Securities raised its rating on Alphabet shares to “Buy,” while lowering its price target from $450 to $425. The new target implies a 33% increase from the closing price of the most recent trading session. Analysts at Phillip Securities noted that Alphabet has demonstrated “robust” revenue growth across its core business segments. Phillip Securities described the fact that significant capital expenditures led to negative free cash flow as a temporary phenomenon.

Also on July 27, CITIC Securities, China’s largest brokerage and investment banking firm, maintained its “buy” rating on Alphabet shares and raised its price target from $430 to $434, MarketSkreener reported.

Last week, following the earnings report, Google maintained its ratings but raised its price targets for Barclays (to $425) and Pivotal Research (to $475). Freedom Broker upgraded its rating from “Hold” to “Buy.” Wedbush maintained its “outperform” rating and $445 price target but added Alphabet stock to its list of top investment ideas. Analysts at BofA Securities called the post-earnings stock decline a buying opportunity.

At least eight investment banks lowered their price targets for Alphabet by an average of $27, or 6.4%, following the earnings report, while maintaining their ratings. Among them are JPMorgan, Morgan Stanley, and Wells Fargo. According to MarketWatch, 64 out of 72 analysts covering Alphabet stock recommend buying it, while eight recommend holding it. The Wall Street consensus price is about $430, which is 34% higher than the closing price on July 24.

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