Altimeter's Brad Gerstner on big tech and how to trade it
Speakers
Brad Gerstner
— CEO, Altimeter Capital
Summary
Brad Gerstner explains Altimeter's overweight in memory and logic (SK Hynix) and bullish stance on NVIDIA, citing cheap valuations and durable earnings. He also discusses rotating out of Microsoft and the broader market outlook.
- Altimeter has 80% of capital in memory, logic, and compute stocks like SK Hynix.
- Gerstner argues memory stocks trade at 5x earnings but have durable earnings through 2028-2029.
- He is bullish on NVIDIA, calling it undervalued and underowned with $1 trillion in future orders.
- Altimeter rotated out of Microsoft due to lower AI capex and software skepticism, but still views it positively.
- He acknowledges chip stocks like ARM have rallied but advises retail investors may take profits.
- Gerstner remains long-term bullish on the market despite risks from Iran and potential oil spike.
Trade Ideas
Memory earnings durable, valuation cheap.
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.
NVIDIA undervalued, underowned, strong outlook.
NVIDIA is 'terribly underowned' and 'terribly undervalued' at $195, trading at 13-14x fully taxed earnings on a business with $1 trillion in future orders. He argues it remains the most efficient on a token-per-watt-per-dollar basis, and the pie is growing so much that NVIDIA's slice will be large even if it loses some share to custom chips.
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This CNBC video, published May 04, 2026, features Brad Gerstner discussing 000660.KS, NVDA. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: Brad Gerstner · Tickers: 000660.KS, NVDA