In this article, we will discuss the 10 Best Stocks to Buy According to AI Bull Brad Gerstner.
Brad Gerstner of Altimeter has been one of the most vocal bulls on the AI boom, having consistently rejected Wall Street’s skepticism on valuations and bubble fears. In a recent interview, he said early concerns about AI startups have been proven wrong so far, pointing to companies like OpenAI and Anthropic showing rapid revenue growth. He believes demand for new AI models is strong because businesses are seeing real returns from using AI, and real-world use cases are expanding quickly. He described the total addressable market for AI as “infinite.”
He talked about the explosive growth Anthropic is seeing and mentioned the core reasons behind the trend:
“The first thing for me is that model and product capability just hit this threshold, near AGI, and everybody is like this is so good I have to have it this is no longer about my IT budget this is about labor augmentation and labor replacement,” Gerstner said. “It turns out that the TAM for intelligence is radically different than anything that we’ve seen before. It was companies demanding the product. They’re getting throttled on the product. Why? Because it’s so good. It makes them better at their business.”
For this article, we scanned Altimeter’s Q4 portfolio and picked its top 10 holdings in terms of stake value. 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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Brad Gerstner of Altimeter Capital
10. Alphabet (NASDAQ:GOOGL)
Altimeter Capital’s Stake: $162,537,770
Wall Street’s fears about Alphabet’s (NASDAQ:GOOGL) bread and butter (search and ads) haven’t proven to be true so far. The company’s search business is expanding. In Q4, Search usage reached its highest level ever, while AI Mode queries were 3 times longer than traditional searches, suggesting engagement is increasing rather than being displaced. Alphabet’s revenue stream is broadening fast. In Q4, its Cloud business rose 48% year over year, and ended the period with a $240 billion backlog.
YouTube is another underestimated growth catalyst for Alphabet. The video platform’s revenue exceeded $60 billion in 2025, surpassing Netflix’s revenue in the same period.
But perhaps the strongest growth catalyst for GOOG in terms of AI is its foray into custom chips. Google’s TPU (Tensor Processing Unit) could see high demand as companies start to cut their reliance on expensive Nvidia chips.
Alphabet has a long-term deal with Broadcom to build and supply its AI chips (TPUs) through 2031, which helps it secure chip supply and reduce dependence on Nvidia. Anthropic also plans to use about 3.5 gigawatts of Alphabet’s TPU compute starting in 2027, showing that outside companies are starting to run large-scale AI systems on Google’s chips.
Montaka Global Investments stated the following regarding Alphabet Inc. in its Q4 2025 investor letter:
Alphabet Inc. has large, valuable core businesses that are clear beneficiaries of larger and more powerful AI models. Therefore, any ‘excess’ capacity that might materialise from the data centre buildout over the coming years will more rapidly be absorbed by their internal needs. So overall, we see the existence of large, tech/AI-enabled non-cloud businesses attached to the hyperscalers, not as a risk, but as a major strategic advantage (Click here to see the full text).
9. CoreWeave (NASDAQ:CRWV)
Altimeter Capital’s Stake: $230,099,400
Companies are lining up to use CoreWeave’s (NASDAQ:CRWV) AI computing power because demand for AI infrastructure is far higher than supply, and CoreWeave gives them fast access to large-scale GPU capacity without building their own data centers. Recently, Meta signed a $21 billion expanded deal to secure long-term AI cloud capacity through 2032, while Anthropic signed a multi-year deal to run its Claude models on CoreWeave’s infrastructure, adding another major frontier AI lab to its customer base.
CoreWeave also continues to work with major AI players like OpenAI, Perplexity, and Nvidia-linked infrastructure partners, showing that most leading AI labs are now using its platform in some form. CoreWeave now has a $66.8 billion revenue backlog, and a big chunk of that money will show up as revenue in the next 2–4 years.
For 2026, CoreWeave expects $12–13 billion in revenue, compared with roughly about $5 billion in 2025, more than double year over year.
RiverPark Large Growth Fund stated the following regarding CoreWeave, Inc. in its fourth quarter 2025 investor letter:
“CoreWeave, Inc. (NASDAQ:CRWV): CRWV shares declined in 4Q25 following the company’s 3Q25 report. While revenue grew more than 40% year-over-year, results came in slightly below elevated investor expectations, with management citing elongated lead times for GPU deliveries and a slower ramp in certain enterprise AI workloads. Gross margins compressed modestly due to higher power and data center infrastructure costs, and guidance pointed to continued investment intensity through 2026 as the company scales new facilities in Texas and Norway. These dynamics led to profit-taking after a strong post-IPO performance.
We believe CoreWeave’s purpose built infrastructure is uniquely positioned within the high performance cloud compute market. Its differentiated architecture, deep relationships with leading AI model developers, and strategic partnerships across the semiconductor and infrastructure supply chain create a compelling long-term opportunity. As capacity expands and utilization improves, we expect CoreWeave to emerge as a high-growth, high-return platform within next-generation cloud computing.”
8. Coupang (NYSE:CPNG)
Altimeter Capital’s Stake: $369,815,571
Coupang (NYSE:CPNG), often known as the “Amazon of Korea,” ranks 8th in our list of the best stocks to buy according to Brad Gerstner. With over 100 fulfillment centers across the country and about 70% of the population living within 7 miles of its network, it’s a major player in Korea’s estimated $500B+ commerce market. Coupang’s active customers reached over 24 million last year, more than doubling since 2019.
Coupang’s Developed Offerings, which include Eats, Taiwan operations, and Farfetch, have grown from under $100 million in 2020 to about $4.6 billion over the past 12 months. Analysts believe the company can expand its margins by scaling logistics, growing its third-party marketplace and AI-driven automation.
Brown Advisory Mid-Cap Growth Strategy stated the following regarding Coupang, Inc. in its fourth quarter 2025 investor letter:
“While we were content with full-year results, several small detractors held fourth-quarter performance back by about 1%-2% in total for company-specific reasons that we generally view as temporary. Coupang, Inc. (NYSE:CPNG) shares were pressured following a large-scale data breach late in the year. Ongoing government investigations and the potential for financial penalties remain an overhang.”
7. Taiwan Semiconductor Manufacturing (NYSE:TSM)
Altimeter Capital’s Stake: $370,510,893
Rising demand for chips and tight capacity give Taiwan Semiconductor Manufacturing (NYSE:TSM) a unique position to have pricing power and operating leverage. With an estimated AI CapEx of a whopping $700 billion this year from major hyperscalers and tech companies, TSMC sits at the center of that demand cycle. Taiwan Semiconductor’s moat: Its customers are not willing to leave the company because switching foundries is extremely hard. Taiwan Semiconductor Manufacturing holds about 62% of the total foundry market and over 90% of the market for advanced nodes (7nm and below).
Apple is a major customer for Taiwan Semiconductor Manufacturing as the company makes iPhone and Mac chips like the A-series and M-series. Nvidia relies on TSMC for its AI GPUs used in data centers. AMD uses TSMC for CPUs and GPUs. Qualcomm, Broadcom, MediaTek and Marvell also rely on it for production.
Read what a Broadcom executive recently said about the demand TSM is facing here.
Taiwan Semiconductor Manufacturing has raised its capital expenditure forecast to $56 billion for 2026 and plans $165 billion in US investments over the next few years. Its moat and high-capacity production make it an attractive buy for the long term despite its gains. The stock trades at a forward P/E of 20x, slightly above its 5-year average of 19x.
Magellan Global Fund stated the following regarding Taiwan Semiconductor Manufacturing Company Limited in its fourth quarter 2025 investor letter:
“The largest contributors to the portfolio’s performance over the quarter were Alphabet, Amazon and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). TSMC performed strongly, closing at record highs on continued strength in demand for semiconductors, including for AI applications, which CEO C.C. Wei described as “insane”. TSMC, having cemented their dominant position at the leading edge, have begun mass production of 2nm chips using the new Gate All Around transistor architecture during the quarter. We continue to view TSMC as well-positioned to benefit from rising compute intensity, with the market having an increased appreciation of their agnostic position with respect to potential shifts in market share of AI chip designers.”
6. Snowflake (NYSE:SNOW)
Altimeter Capital’s Stake: $444,775,213
Snowflake (NYSE:SNOW) sells a cloud-based data platform that lets companies store, process, and analyze massive amounts of data. Unlike other SaaS companies, Snowflake uses a consumption-based model, which means meaning customers pay based on how much data they use, query, and compute.
The stock is down roughly 44% this year, as investors worry that AI could disrupt traditional SaaS models and reduce software spending. But Snowflake bulls believe these fears are overblown.
Their case is simple: Snowflake isn’t really a SaaS company in the traditional sense. Its usage-based model actually benefits from AI, not suffers from it. As companies adopt AI, they generate more data, run more queries, and require more computing power. All of this directly increases Snowflake’s revenue. The company’s backlog (remaining performance obligations) rose 40% year over year in Q4.
Snowflake’s revenue rose 30% year over year in Q4, and it expects high-20% growth going forward.
BofA recently highlighted Snowflake’s accelerating growth and said the company is benefiting from both its core data business and early traction in AI tools. The bank noted Snowflake’s product revenue growth driven by stronger core demand and AI products like Intelligence and Cortex AI. It also pointed out that Snowflake’s Intelligence tool is now used in 2,500 accounts, doubling quarter-over-quarter, signaling rising adoption.
Aristotle Growth Equity Fund stated the following regarding Snowflake Inc. in its fourth quarter 2025 investor letter:
“Snowflake Inc. (NYSE:SNOW) is a leading cloud-based data platform that empowers organizations to consolidate, manage, and analyze their data securely and efficiently. Through its AI Data Cloud, Snowflake enables customers to eliminate data silos, apply AI and analytics, build data-driven applications, and share data across organizations, all while leveraging a flexible, consumption-based pricing model. With a scalable architecture spanning compute, storage, and cloud services, Snowflake supports diverse industry specific solutions and serves a global customer base, including many of the world’s largest enterprises.
Snowflake stands out as a leading data cloud platform, capitalizing on the shift of enterprise analytics to the cloud and serving a vast addressable market. Its cloud-neutral, multi-cloud approach and deepened partnerships, especially with Microsoft Azure, drive strong market adoption and insulate growth. The company’s consumption-based pricing model supports impressive retention and expansion, while also providing the potential for upsell traction among an expanding roster of large enterprise clients. With rapid growth in generative AI and new workloads, Snowflake is capturing substantial AI-related revenue and customer interest. We believe its robust financial profile, featuring strong margins and a clear path to profitable growth at scale, positions Snowflake as a compelling long-term investment opportunity. It trades at a premium valuation compared to the broader group of infrastructure peers, but we view this as justified by the multi-year outlook and opportunity for revenue growth and margin expansion.”
5. Uber Technologies (NYSE:UBER)
Altimeter Capital’s Stake: $456,660,194
Uber Technologies (NYSE:UBER) shares are down 25% over the past six months, but bulls believe it’s a solid long-term pick for patient investors. Why? Uber has become a global platform for ride-hailing, food delivery, and logistics. It connects millions of riders, drivers, and merchants across multiple business lines, with mobility as its core engine and delivery as a fast-growing second pillar.
Uber Technologies is showing clear progress in profitability. Non-GAAP earnings per share grew about 37% year over year in fiscal 2025, while cost discipline is improving across the business. SG&A expenses have fallen to below 20% of revenue. This shift suggests Uber is no longer just scaling revenue, but also converting that scale into earnings power.
Uber Technologies has about 64% share in the ride-sharing market, giving it a dominant platform advantage that is difficult for competitors to replicate without heavy capital spending. The company’s delivery business, which has higher margins, is growing faster in bookings than mobility.
Uber Technologies is pushing into emerging markets such as Latin America and Asia Pacific, where rising middle-class populations and limited local competition create room for long-term expansion.
Platinum International Technology Fund stated the following regarding Uber Technologies, Inc. in its fourth quarter 2025 investor letter:
“Jacobs Solutions, Microsoft and Uber Technologies, Inc. (NYSE:UBER) detracted from the Fund’s quarterly returns by between 0.5% and 0.8% each but we take a longer-term view and continue to view these businesses as well-placed.
We would call Uber a ‘battleground’ company. It’s clearly the leader in ridesharing and meal delivery in the U.S. and many international markets. Autonomous vehicles continue to gain traction, with Waymo (Alphabet), Telsa and Zoox (Amazon.com) at the forefront and many other companies developing autonomous vehicle strategies.
Uber is working with many of these companies and is well placed to maintain its central network role in a hybrid world of human-driven and autonomous vehicles. That said, we recognise the inherent uncertainties and view Uber as a higher-risk, higher-return investment opportunity. Accordingly, Uber is a smaller position in the Fund and is not a top 10 holding.”
4. Amazon.com (NASDAQ:AMZN)
Altimeter Capital’s Stake: $511,418,641
Amazon shares have performed relatively well compared with several other major tech stocks this year. But does the stock have more room to run?
Amazon holds roughly a 30–32% share of the global cloud infrastructure market and is ahead of Microsoft Azure and Google Cloud. But how does AWS benefit from the rise of AI usage around the world? AWS usually generates operating margins estimated at around 30%, significantly higher than traditional retail margins. AWS has a strong moat because of the reliability and scalability it provides to large corporations. It benefits from high switching costs and long-term contracts, as migrating enterprise systems can cost millions and take years, helping maintain stable recurring revenue.
AWS ecosystem of services is another strong business moat. Unlike Microsoft Azure and Google Cloud, AWS offers 240+ cloud services, allowing companies to build, train and deploy AI models, store data, run applications and manage cybersecurity within one platform, increasing switching costs and strengthening customer lock-in over time.
E-commerce and ads are strong growth fundamental catalysts for the stock. Amazon.com Inc (NASDAQ:AMZN) controls roughly 40% of U.S. e-commerce, which gives the company access to consumer purchase data. This creates a goldmine for advertisers to target users, and Amazon.com Inc is tapping into that opportunity. Amazon’s ad segment has been growing around 20% annually in recent years and already generates tens of billions in yearly revenue, making it one of the largest digital advertising platforms behind Google and Meta.
TCW Relative Value Large Cap Fund stated the following regarding Amazon.com, Inc. in its fourth quarter 2025 investor letter:
“Amazon.com, Inc. (NASDAQ:AMZN) is a $2.3 trillion internet company headquartered in Seattle, WA. Amazon.com is an online retailer that also offers personalized shopping services, web-based credit card payment, and direct shipping to customers. AMZN is the largest e-commerce platform in the US with a ~40% market share. Amazon’s secret sauce is their logistics infrastructure that allows for superior delivery times and lower costs than peers, which they use to delight their loyal Prime membership base. Amazon also operates a cloud platform offering services globally through Amazon Web Services (AWS), a fantastic second business with growth opportunities in cloud migrations and AI workloads. Advertising is increasingly important to the overall business with nearly $70 billion of annualized revenues, driven by Sponsored Listings as well as Fire TV/Prime Video ad inventory (e.g., during Thursday NFL games). At initiation in October 2025, shares of AMZN met two of the five valuation factors (price-to-sales; price to-cash flow).
The investment catalyst is new products/markets. AWS has been less impacted by the wave of AI spending than its hyperscale peers as they have top heavy clients that are particularly driving growth (i.e., OpenAI for MSFT† Azure). However, it is set to close the gap as corporates and start-ups begin to scale their inference workloads as they introduce AI-powered products. Additionally, AWS is supply constrained but is set to get significantly more capacity in the next 6-12 months, both from third party providers like NVDA as well as their own custom-designed silicon (Trainium 2). On the retail side, the company is demonstrating operational excellence with consistent improvements in its cost to serve. We expect this to continue and receive a mix benefit as advertising continues to grow as a percent of its North America and International segments. As Amazon leadership execute these strategic initiatives, the company can grow cash flow and earnings materially over the medium term.”
3. Microsoft (NASDAQ:MSFT)
Altimeter Capital’s Stake: $617,752,974
MSFT bears believe the company’s business is under threat amid AI disruption. But some analysts think the company can actually thrive while other SaaS companies get crushed. Why? MSFT can easily shift from a per-seat pricing model to a per-workload model while sitting on one of the largest enterprise distribution networks in the world. The company has over 450 million commercial users embedded across email, documents, and workflows. That gives it direct access to enterprise data—the key input that makes AI useful. At the same time, over 3.7 million businesses rely on its software, while nearly 486,000 organizations run on Azure, including 85% of the Fortune 500. This means Microsoft has a strong ecosystem that protects it from AI disruption. Even if AI reduces the number of software seats, Microsoft can monetize higher usage through Copilot, automation, and cloud compute.
Microsoft is also foraying into the chip segment to cut its reliance on outsiders. Its Maia 200 AI accelerator chip is designed to run large-scale AI workloads inside Microsoft data centers, while the Cobalt 200 CPU is aimed at improving general cloud computing efficiency on Azure. Together, these custom chips reduce dependence on external suppliers and improve long-term cost control, performance, and scalability.
Mar Vista U.S. Quality Strategy stated the following regarding Microsoft Corporation (NASDAQ:MSFT) in its Q1 2026 investor letter:
“Microsoft Corporation’s (NASDAQ:MSFT) stock came under pressure in Q1 as investors grew concerned about the rising costs required to fund its accelerating AI infrastructure build-out in 2026. This, combined with heightened expectations for Azure growth, led to a sell-off following the December quarter earnings report, when Azure revenue grew “only” 39% year over year.
Investors have increasingly questioned the return on investment associated with Microsoft’s large and rapidly expanding capital expenditures tied to AI infrastructure. While these investments are substantial, we believe Microsoft is well positioned to support this growth through its strong and expanding operating cash flows. Although the company has meaningful exposure to OpenAI, OpenAI’s ability to raise over $100 billion should help alleviate investor concerns regarding its capacity to meet large contractual commitments.
Microsoft remains a top portfolio holding, supported by its financial strength, diversified revenue streams, and broad customer base, all of which provide resilience. The company is experiencing strong growth in Azure, its hyperscale cloud platform, which is capacity constrained, alongside increasing adoption of its Copilot offerings across its extensive enterprise customer base. We believe Microsoft should be well positioned to generate attractive long-term returns from its partnership with OpenAI and to effectively monetize generative AI capabilities across its global enterprise IT footprint through its expanding suite of Copilot and AI-enabled products.”
2. Meta Platforms (NASDAQ:META)
Altimeter Capital’s Stake: $1,218,108,963
Meta shares are down about 10% over the past six months amid concerns related to massive spending and regulatory pressures. However, some analysts believe now is the time to pile into the stock. Mark Zuckerberg’s AI spending plans are not without a basis.
With daily active users of about 3.5 billion, Meta’s huge edge in the AI race is the data and user base it has access to, which is extremely useful for ads targeting and monetization.
The company is already seeing the benefits of AI for its core business. Meta doubled the number of GPUs training its ad models in late 2025. Improvements in Generative Ads Model led to a 3.5% increase in ad clicks on Facebook and more than a 1% lift in Instagram conversions in a single quarter. Reels watch time rose 30% in 2025, helped by AI-driven content recommendations.
Meta Platforms (NASDAQ:META) is also planning to reduce its reliance on Nvidia chips by accelerating the deployment of its own custom silicon, the Meta Training and Inference Accelerator (MTIA), to lower long-term compute costs.
The stock has a P/E of roughly 21, below its five-year average of 22.6x.
Harding Loevner Global Equity Strategy in its investor letter mentioned exactly why the market concerns increased around Meta. Read the full text of the letter here.
1. NVIDIA Corporation (NASDAQ:NVDA)
Altimeter Capital’s Stake: $1,510,607,666
Despite bubble fears and valuation concerns, the scarcity of high-quality AI chips and NVIDIA’s (NASDAQ:NVDA) dominance in this space remain the biggest growth drivers for the stock. This scarcity gives Nvidia strong pricing power because hyperscalers are aggressively competing for limited supply.
NVIDIA Corporation management sees total sales potentially reaching $1 trillion through 2027, driven by continued hyperscaler investment in AI infrastructure. Hyperscaler capital expenditure could reach $600 billion to $700 billion in 2026 alone, which provides a large and expanding demand base for Nvidia’s systems.
NVIDIA’s key chips are seeing strong demand, but Wall Street is slowly becoming immune to these numbers. For example, Blackwell generated $184 billion in revenue in 2025 and is expected to reach about $320 billion in 2026.
NVIDIA is shifting from selling chips to capturing value from AI “token economics,” where performance per watt, latency, and cost per token drive pricing power. In the future, Nvidia can monetize full racks, networking, and software more efficiently. This increases prospects of revenue growth well beyond current expectations.
Baron Opportunity Fund stated the following regarding NVIDIA Corporation in its fourth quarter 2025 investor letter:
“At Baron, we are deep research, evidence-based investors. We are positive about AI because it is real. It is the most significant change to the global economy since the internet itself. Every digital interaction of today forward will have AI as the brains of the application. We have investments across all the layers of the AI stack and spanning industries. Our most successful investments to date have been in the infrastructure or compute layer. We were early investors in NVIDIA Corporation (NASDAQ:NVDA), over four years before the ChapGPT moment of November 2022, and it has been more than a 10-bagger for the Fund. Several of us spent a full day with founder and CEO Jensen Huang in the Fall of 2018, where he went to the white board to teach us about AI and why NVIDIA would win.”
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