In this article, we will discuss the 5 Best Stocks to Buy According to AI Bull Brad Gerstner. Please visit the 10 Best Stocks to Buy According to AI Bull Brad Gerstner, if you would like to see the extended list and the methodology behind it.
Brad Gerstner of Altimeter Capital
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 (NYSE:UBER) 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 (NYSE:UBER) 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 (NYSE:UBER) 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. (NYSE:UBER) 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 (NASDAQ:AMZN) 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. (NASDAQ:AMZN) 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 (NASDAQ:NVDA) 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 (NASDAQ:NVDA) 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 (NASDAQ:NVDA) 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 (NASDAQ:NVDA) 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.”
While we acknowledge the potential of NVDA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about the cheapest AI stock.
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