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Move Over Nvidia, Taiwan Semiconductor, and Micron. Brad Gerstner's Altimeter Capital Just Gave Investors 2,999,536 Reasons to Check Out the Hottest Artificial Intelligence (AI) IPO Stock of 2025
Move Over Nvidia, Taiwan Semiconductor, and Micron. Brad Gerstner's Altimeter Capital Just Gave Investors 2,999,536 Reasons to Check Out the Hottest Artificial Intelligence (AI) IPO Stock of 2025

Globe and Mail

time3 days ago

  • Business
  • Globe and Mail

Move Over Nvidia, Taiwan Semiconductor, and Micron. Brad Gerstner's Altimeter Capital Just Gave Investors 2,999,536 Reasons to Check Out the Hottest Artificial Intelligence (AI) IPO Stock of 2025

Brad Gerstner is the founder and CEO of hedge fund Altimeter Capital. Some of his more notable wins include being an early investor in data cloud company Snowflake and Asian ridehailing leader Grab. As is the case with many investment funds, Altimeter has made artificial intelligence (AI) stocks a core feature of its portfolio in recent years. According to its most recent 13F filing, Altimeter trimmed its stake in Nvidia during the first quarter while completely dumping its stakes in Micron and Taiwan Semiconductor Manufacturing. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Interestingly, though, I discovered that Altimeter holds a position in red-hot AI IPO stock CoreWeave(NASDAQ: CRWV). This comes from an investment Altimeter made when CoreWeave was still a private company. As of the close of trading on June 4, Altimeter's 2,999,536 shares were worth about $489 million Let's explore some of the core themes in the ongoing AI revolution to try and discern what may have motivated these moves. From there, I'll break down CoreWeave's business and recent price action to help determine if the stock is a good buy right now. Why sell Nvidia, Micron, and Taiwan Semi stock right now? Considering how robust demand has been for high-end graphics processing units (GPU) and memory storage chips, reducing exposure to names such as Nvidia, Micron, and Taiwan Semi looks like a head-scratcher on the surface. However, this is not the first time that Gerstner has shown some contrarian characteristics in his investment style. While I cannot say for certain what Altimeter's current thesis is regarding chip stocks or the AI movement more broadly, I've come up with some reasons that may help justify the fund's recent moves. According to industry estimates, Nvidia currently controls roughly 90% (or more) of the data center GPU market. While a lead like that might suggest Nvidia's moat is insurmountable, there are some risks to consider. First, Nvidia's revenue sources are heavily concentrated among cloud hyperscalers such as Amazon, Alphabet, and Microsoft. Each of these companies has been developing their own custom AI chips, potentially signaling their intentions to migrate away from Nvidia's architecture over time. When you layer on top that the fact that Advanced Micro Devices has steadily been gaining momentum in the data center arena -- as its deals with Oracle, Microsoft, and Meta Platforms demonstrate -- Nvidia's growth could be on course for some deceleration. Lastly, one of the storm clouds hanging over Nvidia at the moment is its exposure to China. New U.S. export controls and President Donald Trump's tariffs could cut into its sales there. Micron operates in a unique pocket of the AI realm. It specializes in memory storage chips, which are vital hardware for data centers, personal computers, and smartphones, among other technologies. With that said, memory chips are relatively commoditized. On top of that, a shift toward cloud-based AI infrastructure could potentially serve as a headwind for Micron's hardware-centric chip memory business. Taiwan Semiconductor specializes in fabrication services -- its foundries are where chips designed by Nvidia, AMD, Broadcom, and a host of others are actually manufactured. While demand for GPUs and other types of AI chips is strong, a deceleration in sales growth from key customers (i.e., Nvidia) could trickle down to TSMC's business, too. Furthermore, most of TSMC's factories are located in Taiwan. Given the ongoing geopolitical pressures Taiwan faces from China, it's possible that U.S. chip designers like AMD or Nvidia could begin to turn to alternative foundry providers such as Intel. What does CoreWeave do? CoreWeave is a cloud computing infrastructure provider that offers its clients access to Nvidia GPUs and a host of other chip integrations. As such, its business is not as exposed to the time it takes to design and manufacture sophisticated hardware -- unlike the names explored above. In a way, this makes the hyperscaler more nimble than other chip and data center stocks, allowing the company to scale at a faster pace. CoreWeave is able to take advantage of the booming chip landscape but more so on the AI training and inferencing side. Ultimately, it fills the gap between producing chipsets and accessing optimized AI cloud infrastructure. It's not that Nvidia, Micron, or TSMC are poor investment choices right now. It's simply that those businesses might be reaching levels of maturity, whereas CoreWeave's model could be in the early phases of exponential expansion. Is CoreWeave stock a good buy right now? The chart below illustrates how CoreWeave's price-to-sales (P/S) ratio has progressed since its initial public offering (IPO) earlier this year. There are a couple of big takeaways from this chart. First, it's clear that CoreWeave has experienced notable valuation expansion. In my view, outsize momentum is propelling CoreWeave stock right now -- and buying in the wake of its recent climb could leave you as an unsuspecting bag holder. In addition, CoreWeave's P/S multiple is almost fourfold that of Oracle -- which also provides core data center infrastructure services. Oracle is a mature, profitable business, unlike CoreWeave's high-cash-burn operation. While I understand the thesis behind CoreWeave's value proposition in the AI landscape, I think the stock is overbought right now. I would pass on investing at its current valuation, but would keep tabs on the company and its growth prospects. Should you invest $1,000 in CoreWeave right now? Before you buy stock in CoreWeave, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CoreWeave wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider whenNetflixmade this list on December 17, 2004... if you invested $1,000 at the time of our recommendation,you'd have $668,538!* Or when Nvidiamade this list on April 15, 2005... if you invested $1,000 at the time of our recommendation,you'd have $869,841!* Now, it's worth notingStock Advisor's total average return is789% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you joinStock Advisor. See the 10 stocks » *Stock Advisor returns as of June 2, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Adam Spatacco has positions in Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Intel, Meta Platforms, Microsoft, Nvidia, Oracle, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft, short August 2025 $24 calls on Intel, and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

German agentic AI company Parloa raises $120m in Series C round
German agentic AI company Parloa raises $120m in Series C round

Yahoo

time07-05-2025

  • Business
  • Yahoo

German agentic AI company Parloa raises $120m in Series C round

Parloa, a Germany-based company that specialises in Agentic AI for customer experience, has raised $120m in Series C funding to expand its Agentic AI customer service platform. Led by Durable Capital Partners, Altimeter Capital and General Catalyst, this round elevated the company's valuation to $1bn. It involved participation from RPT Capital, EQT Ventures, Senovo and Mosaic Ventures. Durable Capital Partners managing partner and chief investment officer Henry Ellenbogen said: 'We are proud to lead this Series C funding round and partner with Parloa's impressive leadership team. 'We chose to invest in Parloa because the company is uniquely positioned to lead this next wave of customer experience innovation and transform this rapidly growing market. We look forward to supporting their mission as they scale to meet global demand.' Founded in 2018, Parloa focuses on a Agentic AI management platform, aiming to transform customer service for enterprises. Over the past year, following a $66m Series B round, the company launched the AI Agent Management Platform (AMP), described as the first Agentic AI platform tailored for enterprise contact centres. Parloa said that its technology is used by several major organisations including Fortune 200 companies. The platform enables the creation and deployment of AI agents capable of engaging in personalised and natural conversations with customers. These agents are tested extensively before going live, incorporating measures such as simulation, data isolation and content filtering. Parloa plans to use the latest investment to scale its operations in North America and Europe. Additionally, Parloa intends to enhance the capabilities of its AMP platform and strengthen its workforce through global talent acquisition. Parloa CEO and co-founder Malte Kosub said: 'The way people interact with businesses is changing forever. At Parloa, we have been at the forefront of that change and are helping enterprises transform customer service with AI. 'Our customers are building 1:1 relationships between AI agents and their customers with every interaction to deepen loyalty, realise new revenue streams and create highly personalised experiences. 'This new funding accelerates our mission to expand the category-defining AI Agent Management Platform for enterprises.' "German agentic AI company Parloa raises $120m in Series C round" was originally created and published by Verdict, a GlobalData owned brand.

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

Yahoo

time29-04-2025

  • Business
  • Yahoo

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

We recently published a list of . 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.' READ ALSO 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In 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). Brad Gerstner of Altimeter Capital 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. 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. 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. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio

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