Brad Gerstner

The tweet highlights

The "Invest America Act" (Trump Accounts) is now law. Every child gets an account seeded with $1,000 in the S&P 500. 1.5 million families claimed accounts in 5 days. This creates a government-mandated, structural "bid" for US equities. It ensures a constant inflow of passive capital into the index for decades, effectively capitalizing the population. Long. Structural tailwinds for the broad US index. Political reversal of the law or broader macro recession.

Memory stocks like SK Hynix are trading at roughly 5x fully taxed GAAP earnings, a valuation that is 'ridiculous' if earnings prove durable through 2028-2029. He believes the industry is restructuring with more collaboration with hyperscalers, reducing the boom-and-bust cycle, and he maintains these as some of Altimeter's largest holdings.

"Anthropic unquestionably has a lot of financial momentum... we had a $6 billion month out of Anthropic in February... OpenAI ended 2025 at 20 billion annualized run rate." Frontier AI models are generating historic, unprecedented revenue growth by augmenting labor rather than just competing for fixed IT budgets. Because OpenAI and Anthropic are private, the most direct public market beneficiaries are their primary hyperscaler partners and investors, who will capture massive cloud compute and API distribution revenues. LONG the major cloud providers as they are the foundational toll roads capturing the explosive, proven enterprise spend on frontier AI models. A significant portion of current AI spend may be experimental; if enterprises fail to see long-term ROI, test budgets could dry up, leading to a sharp revenue contraction.

"Anthropic unquestionably has a lot of financial momentum... we had a $6 billion month out of Anthropic in February... OpenAI ended 2025 at 20 billion annualized run rate." Frontier AI models are generating historic, unprecedented revenue growth by augmenting labor rather than just competing for fixed IT budgets. Because OpenAI and Anthropic are private, the most direct public market beneficiaries are their primary hyperscaler partners and investors, who will capture massive cloud compute and API distribution revenues. LONG the major cloud providers as they are the foundational toll roads capturing the explosive, proven enterprise spend on frontier AI models. A significant portion of current AI spend may be experimental; if enterprises fail to see long-term ROI, test budgets could dry up, leading to a sharp revenue contraction.

"Just a few months ago, the S&P peaked at 24 times. Now we're at 21 times. But I think the market may be getting it a little bit wrong... I think Trump has a very limited set of goals. He wants to destroy and degrade threats... He doesn't want to spread democracy." The broader market has sold off and multiples have compressed due to "post-traumatic stress" fears of a prolonged Middle East quagmire and resulting inflation. If the administration secures a quick exit and avoids a long-term occupation, these macroeconomic fears will subside, allowing equity multiples to expand back to previous highs. LONG the broader market indices to capture the multiple expansion that will occur once the geopolitical overhang and associated inflation fears are resolved. If the conflict drags on, forces boots on the ground, or causes sustained inflation above 3%, multiple compression could worsen.

Buy DELL on strong AI server revenue growth (+757%), raised guidance to $168B, and $51B backlog, positioning it as key AI infrastructure beneficiary.

Snowflake's data infrastructure business is accelerating due to AI token consumption and new products like Snowflake Intelligence and Cortex Code hitting critical mass, leading to 33% growth and raised guidance; Gerstner expects this growth to continue and holds a large personal position.

Brad Gerstner announces he will appear on CNBC to discuss Cerebras, AI inference, and the token economy, expressing gratitude as an early investor without a forward-looking trade call.

Brad Gerstner argues that AI compute and memory stocks are undervalued relative to the massive AI infrastructure buildout and accelerating revenue growth. He highlights that Nvidia, Microsoft, and Google trade at low multiples (19x, 20x, 24x) and memory makers SK Hynix, Samsung, and Micron trade at 5-7x fully taxed GAAP earnings, which is not bubble territory. He has 80% of his portfolio in these names and is heavily long.

Brad Gerstner argues that AI compute and memory stocks are undervalued relative to the massive AI infrastructure buildout and accelerating revenue growth. He highlights that Nvidia, Microsoft, and Google trade at low multiples (19x, 20x, 24x) and memory makers SK Hynix, Samsung, and Micron trade at 5-7x fully taxed GAAP earnings, which is not bubble territory. He has 80% of his portfolio in these names and is heavily long.

Apple Reliance with Gemini, those are two big user bases, right? A lot of India, a lot of the iOS users... partnerships are a great way to bring two products together and expose something like ChatGPT. Foundational model builders are fighting a capital-intensive war, but they all desperately need distribution to reach the next billion users. Apple owns the most valuable distribution network in the world (iOS) and can extract massive value by integrating these models into its ecosystem, driving a hardware supercycle without bearing the massive foundational training capex. LONG. Apple is perfectly positioned to monetize AI at the edge through hardware upgrades and platform integration fees. Regulatory scrutiny over default search/AI partnerships or delays in rolling out compelling Apple Intelligence features that actually drive consumer hardware upgrades.

"Anthropic unquestionably has a lot of financial momentum... we had a $6 billion month out of Anthropic in February... OpenAI ended 2025 at 20 billion annualized run rate." Frontier AI models are generating historic, unprecedented revenue growth by augmenting labor rather than just competing for fixed IT budgets. Because OpenAI and Anthropic are private, the most direct public market beneficiaries are their primary hyperscaler partners and investors, who will capture massive cloud compute and API distribution revenues. LONG the major cloud providers as they are the foundational toll roads capturing the explosive, proven enterprise spend on frontier AI models. A significant portion of current AI spend may be experimental; if enterprises fail to see long-term ROI, test budgets could dry up, leading to a sharp revenue contraction.