Steve Eisman, the investor who became famous for his prescient bet against subprime mortgages ahead of the 2008 financial crisis, says he wants no part of the upcoming SpaceX IPO — and the company’s own prospectus is his primary exhibit.

Eisman, host of “The Real Eisman Playbook” podcast and former Neuberger Berman senior portfolio manager, told CNBC’s “Squawk Box” Monday that he is simply “not a fan” of the offering, which is expected to price as soon as Friday.

According to Eisman:

“Let’s see. If you read the prospectus, I mean, there’s some amusing stuff in the prospectus. Like my favorite part of the prospectus is that one of the things that SpaceX wants to do is asteroid mining. I thought that was kind of funny.”

His more substantive concern is the company’s pivot into AI. Eisman noted that capex as a share of revenue jumped from 42% in fiscal year 2023 to 215% in the most recent first quarter, driven by AI infrastructure spending. He called Grok, SpaceX’s AI product, “not a world class AI company” and warned that AI output broadly is “very commoditized” with “no moats.”

Eisman pointed to the SpaceX S-1’s total addressable market figure of $28.5 trillion, with 85% attributed to AI, noting that “the entire company is being bet on AI in terms of its future, not on SpaceX and not on Starlink.”

According to Eisman:

“What I love about the S-1 is that it reads like a science fiction novel. It really does.”

He clarified he has no interest in shorting the stock. “I have no interest in shorting this. I’m just not playing,” he said.

Eisman previously bet against Tesla before abandoning the short position in 2020. “If you are short, you’ve got to walk away. There’s no glory in losing money,” he said at the time.

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A Goldman Sachs tech specialist thinks one sector of the market looks particularly exciting amid historic stock gains.

Peter Callahan, a telecom sector specialist, says in a new interview that US internet stocks have lagged software this year and haven’t received enough attention.

“There are ongoing debates about sources of funds, about ongoing investment cycles, about the health of the consumer, and of course, where AI in the consumer world goes over the next couple of years. But as of late, you’re starting to see a little bit more innovation from the product side on US internet companies tied to AI.

The temperature on the consumer seems to be coming down as oil prices have reset off the highs. And so given that backdrop and cleaner positioning, I’ll be watching the US internet sector from here.”

Callahan also outlines what investors should track when looking at semiconductor stocks, which are having their best year in decades.

“I think for semiconductors, listen, it’s been a great start to the year. I think any time a group’s up 80% like it is in five months, there’s of course– you have sort of these momentum dynamics. You have too far, too fast.

You have all that type of stuff that kind of matters over the short term. But I think over the medium term, what really matters is earnings revisions, right? And as long as you are getting earnings revisions for this group, which helps keep multiples in track, I think investors will be comfortable adding to this group on pullbacks or momentum unwinds or different pockets of positioning pressures that can show up, of course, when you have moves like this.

So I think at the end of the day, just keep tracking the earnings growth and I’ll do my best to keep this group informed.”

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