Altimeter Capital has sold its Microsoft Corp. (NASDAQ:MSFT) holdings to aggressively fund positions in AI hardware giants like Nvidia Corp. (NASDAQ:NVDA) and SK Hynix, signaling a strategic rotation from software into the booming compute and memory supercycle.
Shifting Capital On AI Supercycle
Despite praising Microsoft’s leadership, Altimeter CEO Brad Gerstner explained, in a conversation with CNBC, that allocating capital in today’s market requires strict prioritization. With 80% of Altimeter’s capital now deployed in memory, logic, and compute, the firm had to pull funds from elsewhere.
“You have to make choices in this market. We only have so much capital,” Gerstner said. He noted that Microsoft was investing “a little less aggressively in capex” to drive future AI growth, while the broader market holds lingering “skepticism about software today.”
The pivot has already paid off. Gerstner pointed out that the stocks Altimeter rotated those dollars into, specifically memory manufacturer SK Hynix, have performed exceptionally well, making the rotation a highly profitable move.
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