Altimeter’s Brad Gerstner builds new position in Nvidia, betting on its central role in AI
Altimeter’s Brad Gerstner builds new position in Nvidia, betting on its central role in AI
Altimeter Capital Chairman and CEO Brad Gerstner has revealed a new position at Nvidia, betting on his role in artificial intelligence. “We’ve long admired Nvidia, its leader Jensen, and the pivotal role they play in AI,” Gerstner said Thursday on CNBC’s “Halftime Report.” “Over the last two years we’ve seen a massive acceleration, as evidenced by OpenAI and the work that Microsoft is doing, what Google is doing, etc.” The tech investor said he initiated Nvidia’s position in December and completed it in January. Chip stock has sold off 50% in 2022, with rising rates hitting growth tech names particularly hard. The title is up 48% since the start of the year. NVDA 1Y mountain Nvidia Gerstner said last year’s sharp selloff presented a good buying opportunity. “The market has frankly given us the opportunity to get into the name in a meaningful way,” Gerstner said. “Multiples for all growth stocks have been squeezed because of these macro worries, where would rates stop? Where would inflation stop? So that opened the door.” He added that there were also two idiosyncratic concerns related to Nvidia, namely revenue from crypto and gaming. The concerns turned out to be overblown, Gerstner said. “Multiples are rising from all-time lows due to what we’ve seen in terms of inflation and the Fed. And the concerns about crypto and gaming are largely behind us,” Gerstner said. The Nasdaq Composite has rebounded more than 16% this year as investors flocked to battered tech names, betting the worst of the tightening cycle is over.
Altimeter’s Brad Gerstner builds new position in Nvidia, betting on its central role in AI