Altimeter's Brad Gerstner on big tech and how to trade it

The current investment landscape is defined by a massive rotation of capital into the AI hardware stack, specifically memory, logic, and compute. Brad Gerstner, CEO of Altimeter Capital, justifies a strategic exit from Microsoft to fund larger positions in high-conviction semiconductor plays like SK Hynix and NVIDIA. Despite concerns over "parabolic" stock moves, semiconductor multiples remain historically low, with companies like Samsung projected to outearn Google while trading at only five times earnings. NVIDIA remains significantly undervalued and under-owned, trading at roughly 14 times earnings despite a trillion-dollar order pipeline. While hyperscalers develop internal chips like TPUs and Tranium, NVIDIA maintains a critical lead in efficiency—measured by tokens per watt per dollar—especially with the upcoming Blackwell and Vera Rubin architectures. This hardware supercycle represents a fundamental industry restructuring rather than a transient bubble, provided geopolitical tensions do not drive oil prices to levels that destabilize the broader market.