MSFT
NVDA
Microsoft got cut from the portfolio
Altimeter Capital’s Brad Gerstner said the firm sold its Microsoft shares to free up capital for bigger bets on AI hardware and memory names like Nvidia and SK Hynix. In plain English: when the AI buffet gets crowded, some managers are deciding software isn’t the main course anymore.
Why this matters to your portfolio
Gerstner framed it as a capital-allocation problem, not a Microsoft problem. He still likes Microsoft — he just thinks the market is paying up more aggressively for the companies powering the AI engines than the companies selling the apps on top.
The real message: AI spend is still the trade
That’s the part investors should care about. If one of the more vocal AI bulls is rotating out of Microsoft and into chips and memory, it reinforces the idea that the market still sees the biggest near-term upside in compute, not just software polish.
- Altimeter said it has roughly 80% of capital in memory, logic, and compute
- Gerstner argued Nvidia remains under-owned, not bubble-priced
- The firm also pointed to SK Hynix’s strong run as proof the trade is working
Big picture: this wasn’t a goodbye to Microsoft so much as a bet that the AI money river is still flowing downhill toward hardware.