Here’s Why Brad Gerstner Remains Bullish on NVIDIA (NVDA) Despite Valuation, Bubble Fears

We just covered the 10 Best Stocks to Buy According to AI Bull Brad Gerstner. NVIDIA Corporation (NASDAQ:NVDA) ranks #6 (see the 5 Best Stocks to Buy According to AI Bull Brad Gerstner).

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 (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:

“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….(Click Here To Read The Letter in Detail)

Brad Gerstner of Altimeter Capital

While we acknowledge the risk and potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NVDA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.

Disclosure: None. Follow Insider Monkey on Google News.