Why One Hedge Fund Just Went ALL-IN on This Explosive AI Cloud IPO—And Dumped Nvidia

Altimeter Capital Bets Big on CoreWeave: Why Brad Gerstner Is Backing AI’s Next Breakout While Sidestepping Nvidia

Brad Gerstner’s Altimeter Capital slashes Nvidia, doubles down on CoreWeave. Why bet on the new AI cloud leader in 2025?

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Venture titan Brad Gerstner just made one of Wall Street’s boldest AI bets for 2025. The Altimeter Capital founder isn’t just chasing AI buzz—he’s ripping up the script by dumping semiconductor darlings like Nvidia and Micron. Instead, Gerstner’s hedge fund plowed nearly half a billion dollars into CoreWeave—the year’s breakout AI cloud IPO.

Why is Altimeter zigging while others zag? Let’s break down Gerstner’s high-stakes contrarian play and see if CoreWeave could be your next AI portfolio superstar.

Q: Why Did Altimeter Exit Nvidia, Micron, and TSMC?

Most investors would clutch tightly to Nvidia and its 90% grip on the data center GPU market. And with AI chips in red-hot demand, walking away looks downright shocking. Yet, Gerstner’s playbook favors future upside over yesterday’s headlines.

Analysts point to mounting headwinds: Cloud giants like Amazon, Alphabet, and Microsoft are pushing custom AI chips, potentially sidestepping Nvidia’s architecture. Add to that:

– AMD is winning market share, scoring major data center deals.
– U.S.-China tensions threaten sales for Nvidia and TSMC.
– Memory chips like Micron’s are commoditized, with AI moving toward cloud-based, less hardware-centric models.
– TSMC’s geopolitical risks loom large, making alternatives like Intel more attractive to U.S. firms.

In sum: Altimeter sees turbulence ahead for legacy chip titans and wants exposure to a nimbler part of the AI ecosystem.

What Is CoreWeave—and Why All the Hype?

CoreWeave isn’t just another chip designer. It’s a cloud infrastructure powerhouse, giving customers on-demand access to the very AI chips (including Nvidia GPUs) powering LLMs and generative AI breakthroughs.

But unlike Nvidia, Micron, or TSMC, CoreWeave doesn’t play the long-cycle hardware game. Instead, it operates with startup agility—rapidly scaling infrastructure to meet surging AI demand. This “picks-and-shovels” approach lets it ride the AI boom without the baggage of chip design or risky fabrication.

The company’s exponential P/S growth since its IPO reveals investors’ intense appetite, but also hints at frothy valuations. For perspective, Oracle’s mature, profitable cloud business trades at a fraction of CoreWeave’s multiple.

Q: Should You Buy CoreWeave Stock Now?

With AI fever sky-high, momentum has inflated CoreWeave’s shares well above traditional infrastructure peers. Investors love the growth story—but the stock’s fourfold valuation premium over Oracle raises red flags.

CoreWeave might be the most potent AI infrastructure bet for the next decade, but right now, it looks overbought. The smart move: Watch for a pullback or stronger profitability before diving in headfirst.

How Can Investors Ride the Next AI Infrastructure Wave?

– Monitor CoreWeave’s quarterly growth. Is it living up to the sky-high expectations?
– Track cloud hyperscalers’ chip roadmaps at Amazon, Microsoft, and Alphabet.
– Compare valuation multiples across cloud and hardware leaders.
– Watch for geopolitical signals—especially U.S.-China relations and semiconductor shifts.

Investor Checklist: Play the AI Cloud Boom Strategically

• Keep CoreWeave on your radar—but avoid chasing overextended rallies.
• Diversify—don’t put all your AI eggs in one cloud or chip basket.
• Stay updated with official filings from the SEC for fund moves.
• Follow major players like Amazon, Nvidia, and Oracle for sector signals.
• Reevaluate positions quarterly, as this fast-evolving sector can flip quickly.

The AI arms race is heating up—and picking the right infrastructure winners will shape portfolios for years to come. Watch the next CoreWeave move and trim risk before diving into the hype.