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 Gerostner is the founder and CEO of Hedge Fund Ultimeter Capital. Some of his remarkable victories include being an early investor in Data Cloud Company A section of snowfall And Asian RideHeling Leader Pull,

As with many investment funds, Altimeter has stocked a main feature of its portfolio in recent years Artificial Intelligence (AI). According to its most recent 13F filing, Altimeter trimmed its stake Nvidia Dumping your stakes completely during the first quarter Micron And Taiwan semiconductor manufacturing,

Interestingly,, however, I came to know that the ultimate Red-hit AI IPO holds a situation in the stock Coreweave (CRWV -17.20%,This investment comes from an ultimator when Korwave was still a private company. As close to trading on June 4, Altimeter’s 2,999,536 shares were priced at around $ 489 million

Let’s find out some main topics in the ongoing AI revolution and try to inspire these tricks. From there, I will break the business and recent price action of the coronary to determine that the stock is still a good purchase.

Why sell NVidia, Micron and Taiwan semi stocks right now?

Given how strong demand is for high-end graphics processing units (GPU) and memory storage chips, reducing contact with names such as Nvidia, Micron and Taiwan Semi looks like a head-scratch on the surface. However, this is not the first time that Gerostner has shown some opposite features in his investment style.

Although I cannot definitely say what is the current thesis of the ultimate about the chip stock or AI movement, I have come with some reasons that can help to justify the recent steps of the fund.

According to industry estimates, NVIDIA currently controls the data center GPU market about 90% (or more). While such a lead may suggest that the gap of Nvidia is estimated to consider some risks. First, the revenue sources of Nvidia are heavily focused among Cloud Hyperscalers like Heroic, AlphabetAnd Microsoft,

Each of these company is developing its own custom AI chips, possibly indicating its intentions to migrate away from the architecture of Nvidia over time. When you lay layer on top, the fact is that Advanced micro equipment The data center is constantly gaining momentum in the sector – as a deal with it OracleMicrosoft, and Meta platform Performance – Nvidia growth may occur on the course for some recession.

Finally, one of the clouds of the storm hanging on Nvidia at this time is the risk for China. The new US export control and tariffs of President Donald Trump can cut its sales there.

Micron is operated in a unique pocket of the AI ​​scope. It specializes in memory storage chips, which are important hardware for data centers, individual computers and smartphones among other technologies. With that, memory chips are relatively weak. At its top, a change towards the cloud-based AI infrastructure can potentially serve as a headwind for the micron’s hardware-focused chip memory business.

Taiwan semiconductor specializes in fabrication services – its founders are those where chips designed by Nvidia, AMD, BroadcomAnd a host of others is actually built. While the demand for GPU and other types of AI chips is strong, an increase in sales from major customers (ie, NVIDIA) may also be low for TSMC’s business.

In addition, most of the TSMC factories are located in Taiwan. Given the ongoing geopolitical pressures from China, it is possible that American chip designers such as AMD or Nvidia may start turning to alternative foundry providers. Intel,

Image Source: Getty Image.

What does Coreweave do?

Coreweave is a cloud computing infrastructure provider that provides access to its customers to a host of NVIDIA GPUS and other chip integration. For example, its business is not exposed to that time, which takes sophisticated hardware to design and build – unlike the names given above. In a way, it makes the hypersscaleer more agile than other chip and data center stocks, allowing the company to scale at a faster speed.

Coreweave Booming is capable of taking advantage of the chip landscape, but AI is more on training and inferior side. Ultimately, it fills the gap between producing chipset and reaching the customized AI cloud infrastructure.

It is not that Nvidia, Micron, or TSMC are currently poor investment options. This is simply that they can reach the level of business maturation, while the model of the corvive can occur in the early stages of exponential expansion.

Is Coreweave Stock a good purchase right now?

The chart below indicates how the value-to-sell (P/s) ratio of the Korwave earlier this year has progressed since its initial public offering (IPO).

CRWV PS Ratio Data by Ycharts

There are some big takeaets from this chart. First, it is clear that Coreweave has experienced a remarkable evaluation expansion. In my view, the outsise Momentum is currently inspiring the coronic stock – and buying in view of its recent climb can leave you as an unheard bag holder.

In addition, Coreweave’s P/S is about four times the multiple orkal – which also provides core data center infrastructure services. Oracle is a mature, beneficial business, opposite to the high-cash-burning operation of the coroaveve.

While I understand the thesis behind the value proposal of Korvive in the AI ​​landscape, I think the stock is still overbott. I will be passed on investing on its current assessment, but will monitor the company and the possibilities of its growth.