Shifting Capital On AI Supercycle<\/p>\n
Despite praising Microsoft\u2019s leadership, Altimeter CEO Brad Gerstner explained, in a conversation with CNBC, that allocating capital in today\u2019s market requires strict prioritization. With 80% of Altimeter\u2019s capital now deployed in memory<\/a>, logic, and compute, the firm had to pull funds from elsewhere.<\/p>\n \u201cYou have to make choices in this market. We only have so much capital,\u201d Gerstner said. He noted that Microsoft was investing \u201ca little less aggressively in capex\u201d to drive future AI growth, while the broader market holds lingering \u201cskepticism about software today.\u201d<\/p>\n The pivot has already paid off. Gerstner pointed out that the stocks Altimeter rotated those dollars into, specifically memory manufacturer SK Hynix, have performed exceptionally well, making the rotation a highly profitable move.<\/p>\n Nvidia Is Not In \u2018Bubble Territory\u2019<\/p>\n \u201cLook at Nvidia at 195 bucks, Nvidia is trading lower than it was six months ago,\u201d Gerstner noted, citing its forward earnings multiples against a trillion dollars in future order guidance<\/a>. \u201cIt\u2019s hard to say that that\u2019s in bubble territory.\u201d<\/p>\n Instead of pulling back, Gerstner remains firmly bullish on the hardware giant. \u201cI think Nvidia is terribly under-owned. I think it\u2019s terribly undervalued today,\u201d he said. \u201cAnd so we\u2019re happy to sit in that and to own it.\u201d<\/p>\n Looking Past \u2018Boom And Bust\u2019<\/p>\n While acknowledging that high-flying tech stocks can tempt retail investors to take quick profits, Gerstner emphasized that the current earnings of memory and chip businesses have true longevity.<\/p>\n Rather than a traditional \u201cboom and bust\u201d cycle, Altimeter views the current hardware demand as a durable trend stretching through 2029, heavily rewarding investors who are willing to let their core winners compound.<\/p>\n How Has MSFT Performed In 2026?<\/p>\n Shares of MSFT have fallen by 14.47% year-to-date, while the Nasdaq 100 has advanced by 9.70% over the same period. It closed 0.14% lower on Monday at $413.62 apiece.<\/p>\n