Altimeter Capital’s $489 Million Bet on CoreWeave: Why Wall Street’s “AI Kingmakers” Are Ditching Nvidia, Micron & TSMC for This Newcomer
Billionaire Brad Gerstner moves nearly half a billion dollars into AI IPO CoreWeave. Is this the next tech juggernaut, or a risky bubble?
- 2,999,536: CoreWeave shares held by Altimeter Capital (June 2025)
- $489 million: Value of Altimeter’s CoreWeave position
- ~90%: Share of the data center GPU market controlled by Nvidia
- -17.13%: CoreWeave stock’s recent price correction
Brad Gerstner, the powerhouse founder and CEO of Altimeter Capital, is no stranger to headline wins. Early stakes in Snowflake and Grab made him a legend on Wall Street. Now, he’s making ripples again—this time with a massive $489 million position in newly public AI infrastructure dynamo CoreWeave.
But while the world was laser-focused on AI chip stalwarts like Nvidia, Micron, and TSMC, Gerstner shook things up in 2025. Recent SEC filings reveal Altimeter slashed its Nvidia stake and dumped Micron and TSMC entirely — all while doubling down on its high-octane CoreWeave bet. So, why the pivot? Is CoreWeave a fast-rising AI star, or is Altimeter’s bold strategy a sign of bubble risk in the making?
Why Would a Billionaire Trim Nvidia, Micron, and TSMC Right Now?
At first glance, the move looks odd. Nvidia controls an estimated 90% of the data center GPU market, riding a tsunami of AI demand. Micron makes the memory chips that power everything from cloud servers to your phone. TSMC is the foundry turning AI chip dreams into silicon reality.
But Gerstner has a habit of zigging while Wall Street zags. While Nvidia’s moat appears wide, risks are growing. Tech giants like Amazon, Alphabet, and Microsoft—all major Nvidia customers—are racing to develop custom AI chips, potentially eating into Nvidia’s future sales. Rivals like AMD are gaining ground, underscored by fresh data center deals from Oracle and Meta.
Meanwhile, Nvidia’s heavy exposure to China looms large. New U.S. export controls—and the specter of renewed tariffs—threaten its Asian sales. If U.S.-China tensions escalate, TSMC also gets caught in the crossfire, with most fabs still based in increasingly tense Taiwan. Micron, specializing in memory chips, faces the headwinds of commoditization and a business model at risk in a cloud-first world.
What Makes CoreWeave Different From Chip Giants?
CoreWeave isn’t building chips—it’s building the backbone for next-gen AI in the cloud. The company offers flexible, on-demand access to Nvidia’s top-tier GPUs and a host of other integrations, providing the computational horsepower AI companies crave, without the headaches of hardware manufacturing.
This makes CoreWeave nimbler than manufacturing-heavy rivals. As the AI arms race heats up, businesses of all sizes want speedy access to the latest chips—without waiting for months-long production cycles or getting locked into a single vendor. CoreWeave steps in as the critical middleman, fueling the AI training and inferencing wave, and capitalizing on rocketing demand for scalable cloud infrastructure.
Importantly, CoreWeave is still in the early innings of growth, unlike Nvidia or Oracle. The upside could be enormous—but so could the risks.
Is CoreWeave Stock Overhyped or an Unmissable Opportunity?
CoreWeave debuted with a bang—its valuation soared, and momentum chasers piled in. In just months, its price-to-sales ratio has skyrocketed, now standing nearly 4x that of mature cloud infrastructure vets like Oracle.
The flip side? CoreWeave is still burning serious cash, while Oracle is already profitable. If AI euphoria sours or growth stalls, latecomers could be left holding the bag. Several analysts have flagged “bubble vibes” in hot AI stocks and recommend patience.
Major tech insiders, including figures from Amazon, Alphabet, Meta Platforms, and Microsoft, have deep stakes in the AI infrastructure race, further reinforcing the sector’s importance but also intensifying the competition.
That said, CoreWeave’s model addresses a critical pain point in AI’s evolution—and with Gerstner and Altimeter closely watching, it’s wise for investors to track this rocket’s flight.
Q&A: Should You Buy CoreWeave After the Dip?
Q: Is CoreWeave cheap after its -17% correction?
A: Despite the pullback, valuation remains rich and risk elevated; only aggressive, long-term investors should consider nibbling—most may want to wait for further clarity or lower entry points.
Q: Which stocks could benefit if CoreWeave stumbles?
A: Major established players like Oracle, Amazon, Alphabet, and Microsoft could seize any missteps, as customers switch back to proven, scaled-up infrastructure platforms.
Q: What’s the key metric to watch?
A: Growth in CoreWeave’s cloud AI customer base and any signs of path to profitability—big contracts or recurring revenues would be bullish green flags.
How to Track the Next Big Move in AI Infrastructure Stocks
- Compare CoreWeave’s customer wins and revenue growth with legacy players like Oracle and Amazon Web Services
- Monitor AI chip supply chains for signs of bottlenecks or surpluses
- Watch regulatory and trade developments impacting chip exports and cloud services between the U.S. and China
- Stay alert to any insider buys or sales from Altimeter or CoreWeave execs
Ready to capitalize on the AI cloud revolution? Follow the smart money—but don’t get caught by hype. Use this checklist to guide your next move:
- Track CoreWeave’s quarterly reports for new customer numbers and revenue trends
- Reassess your portfolio’s AI exposure—balance between high-flyers and mature tech giants
- Set alerts for big swings in CoreWeave’s stock price or valuation multiples
- Subscribe to industry news from reputable sources like Reuters and Bloomberg for any breaking developments
Stay in the loop and make every move count in 2025’s fast-evolving AI investment landscape!