Brad Gerstner Says He's Buying NVIDIA (NVDA) Amid 'Off The Charts' GPU Demand, Secular Growth

We recently published a list of 10 AI Stocks Investors Are Monitoring After Tariff Shock. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other AI stocks investors are monitoring after tariff shock.

The tariff wars and a potential slowdown in AI spending threw water on investors’ AI trade plans and outlook. However, many analysts believe the broader outlook of the industry is still strong.

Ben Bajarin, Creative Strategies CEO, in a latest program on CNBC explained why he is still bullish on the Jensen Huang-led AI giant:

“I think when you look at the technology roadmap … in terms of what they’re doing with Grace Blackwell and Blackwell systems going forward, it’s going to be very, very hard for others to compete. I think they were extremely bullish about how much of the industry—not just the traditional, you know, cloud servers but AI factories and this entirely new infrastructure—and how it is being kind of redeveloped for the AI era. Like, it’s not being built on other things. And so I think when you look at the ecosystem that’s grown around them, they’re deeply entrenched. It doesn’t have any sign of that changing.”

Bajarin said that he sensed “frustration” in Jensen Huang’s tone as the executive feels Wall Street is not modeling the growth potential his company’s AI products truely have.

“And he seems to think that nobody is modeling that in or really understands it. So there’s the—we kind of have a sense of what they’ll sell just product-wise here in 2025, which is where I agree with you. Hard to surprise to the upside to move the stock, but I think he is signaling people don’t understand the magnitude of this opportunity. And I think that’s worth unpacking because there is a lot of growth ahead.”

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For this article, we picked 10 technology stocks Wall Street is closely watching these days. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Investors: 193

Brad Gerstner, Altimeter Capital Founder & CEO, said in a latest program on CNBC that he is adding to his NVIDIA Corporation (NASDAQ:NVDA) position despite having a “bomb shelter” market posture.

“Remember we entered today in kind of bomb shelter positioning. We had puts on the NASDAQ, we had a tremendous number of shorts, and we were sitting in a lot of cash. We only had 50% of our long book even positioned in the market. So we’re dramatically outperforming on a day like today. So we’re going from the bomb shelter to simply, you know, our safety positioning. And that means adding about 15% of net exposure, and we’re adding it in the areas that we believe we’re continuing to see secular growth. And as you know, the growth and the demand for GPUs is off the charts. You hear it from OpenAI, you hear it from Google, you hear it from Elon, you hear it from others. I know there’s a debate about that, but that’s the side of the debate that we’re on.

And then, although we saw these tariffs announced yesterday, we also saw a list of exceptions. And one of the list of exceptions, wise exception, is semiconductors. And I think the reason that semiconductors are being excepted is because for us to charge a tariff on our own chips, right, which are fabricated in Taiwan because they can’t be fabricated in the United States—we don’t have the fabs yet—TSMC, who he mentioned in his speech yesterday, has committed to massive investments as a result of the president’s policy in Arizona to build cutting-edge fabs. But right now, he gave them an exception because we know if we increase the cost of these chips that we design to our own companies like Meta, like Google, like Microsoft, like OpenAI, we’re only shooting ourselves.”

NVIDIA Corporation (NASDAQ:NVDA) is facing challenges at several levels. Competition is one of them. Major competitors like Apple, Qualcomm, and AMD are vying for TSMC’s 3nm capacity, which could limit Nvidia’s access to these chips. Why? Because Nvidia also uses  TSMC’s 3nm process nodes. NVIDIA Corporation (NASDAQ:NVDA) is also facing direct competition from other giants that are deciding to make their own chips. Amazon, with its Trainium2 AI chips, offer alternatives. Trainium2 chips could provide cost savings and superior computational power, which could shift AI workloads away from Nvidia’s offerings. Apple is reportedly working with Broadcom to develop an AI server processor. Intel is also trying hard to get back into the game with Jaguar Shores GPU, set to be produced on its 18A or 14A node.

Harding Loevner Global Developed Markets Equity Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q4 2024 investor letter:

“For the full year, the composite’s underperformance was primarily due to poor stock choices in the US. NVIDIA Corporation (NASDAQ:NVDA), which we sold in the first quarter and repurchased in the fourth quarter, caused almost two-thirds of the strategy’s underperformance. We were hurt by our underweight as NVIDIA’s stock price soared during the first half of the year on the insatiable demand for the company’s graphics processing units (GPUs), which enable generative Al computing.

After ASML’s disappointing outlook led industry valuations to compress, we added a strong company back to the portfolio-NVIDIA.

There were two main reasons we sold NVIDIA last February (after holding the stock for more than five years). First, its biggest customers-data-center behemoths Amazon, Alphabet. Meta Platforms, and Microsoft-have been designing their own custom semiconductor chips, called application-specific integrated circuits (ASICS), that could eventually erode NVIDIA’s dominance. Second, it was unclear to us whether the adoption of Al by large enterprises will be as fast and meaningful as the optimistic views suggested…” (Click here to read the full text)

Overall, NVDA ranks 3rd on our list of AI stocks investors are monitoring after tariff shock. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.