In a sea of green on the Nasdaq today, it’s hard to find a stock that isn’t seeing material upside. However, Nvidia (NASDAQ:NVDA) is among the most-watched stocks despite a move of only 2% in NVDA stock at the time of writing. That’s mainly because Altimeter Capital CEO Brad Gerstner revealed a new position in Nvidia and said some rather lovely things about the chip maker.
Gerstner’s focus on artificial intelligence (AI) led to this position, according to recent reports. Additionally, it’s Gerstner’s expectation that revenue growth could accelerate for Nvidia, with the hedge fund investor tapping NVDA as a way to play this outsized growth.
Of note, Gerstner also points to the fact headwinds for NVDA stock, which include the company’s exposure to crypto and gaming, are largely in the rear view mirror. Thus, as investors look forward to the company’s growth prospects in the AI field, there’s plenty to like about this stock.
Let’s dive into what investors should make of this move.
NVDA Stock Surges Higher On Key Vote of Confidence
Nvidia is certainly a polarizing company among many investors. On the one hand, this is a high-growth stock that has always seen a valuation premium. That’s because semiconductor growth has continued to accelerate, boosted by many of the trends we’ve seen in recent years coming out of the pandemic.
Now, the slowdown seen in gaming and crypto mining did change the narrative in 2022. Thus, NVDA stock was pummeled last year, losing roughly half its value.
But as growth investors such as Gerstner step into Nvidia, choosing to focus instead on the company’s growth prospects in other sectors such as AI, more investors may join in. I tend to agree with Gerstner in his view, and ultimately believe he’ll be proven right over the long-term.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.