10 Best Stocks to Buy According to AI Bull Brad Gerstner

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 (NASDAQ:GOOGL). 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 (NASDAQ:GOOGL) 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 (NASDAQ:GOOGL) 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. (NASDAQ:GOOGL) in its Q4 2025 investor letter:

Alphabet Inc. (NASDAQ:GOOGL) 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 (NASDAQ:CRWV) 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 (NASDAQ:CRWV) 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 (NASDAQ:CRWV) 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. (NASDAQ:CRWV) 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 (NYSE:CPNG) active customers reached over 24 million last year, more than doubling since 2019.

Coupang’s (NYSE:CPNG) 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. (NYSE:CPNG) 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 (NYSE:TSM) 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 (NYSE:TSM) 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 (NYSE:TSM) 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 (NYSE:TSM) 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 (NYSE:SNOW) bulls believe these fears are overblown.

Their case is simple: Snowflake (NYSE:SNOW) 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 (NYSE:SNOW)’s revenue rose 30% year over year in Q4, and it expects high-20% growth going forward.

BofA recently highlighted Snowflake’s (NYSE:SNOW) 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 (NYSE:SNOW)’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. (NYSE:SNOW) 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.”

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