Brad Gerstner, chairman and CEO of Altimeter Capital, has announced a new position at Nvidia, banking on its role in artificial intelligence. “We have long admired Nvidia, its leader Jensen and the central role they play in AI,” Gerstner said on CNBC’s Halftime Report on Thursday. “Over the past two years, we’ve seen massive acceleration evidenced by OpenAI and the work of Microsoft, Google, etc.” The tech investor said he opened the Nvidia position in December and added to it in January. Chip stock sold off 50% in 2022 as rising interest rates hit growth tech stocks particularly hard. The stock is up 48% year-to-date. NVDA 1Y Mountain Nvidia Gerstner said last year’s brutal selloff presents a good buying opportunity. “Frankly, the market has given us an opportunity to put the name to good use,” said Gerstner. “Multipliers for all growth stocks have been compressed on these macro worries, where would rates stop? Where would inflation stop? So that opened the door.” He added that there are also two idiosyncratic concerns related to Nvidia, namely crypto and gaming revenue. The concerns turned out to be overblown, Gerstner said. “Multiples are expanding from their all-time lows on what’s being watched for inflation and the Fed. And the concerns about crypto and gaming are largely behind us,” said Gerstner. The Nasdaq Composite has gained more than 16% this year as investors flocked to ailing tech stocks, betting that the worst of the tightening cycle is over.
https://www.cnbc.com/2023/02/02/altimeters-brad-gerstner-builds-a-new-position-in-nvidia-betting-on-its-central-role-in-ai.html Altimeter’s Brad Gerstner is building a new position at Nvidia and betting on its pivotal role in AI
