Nvidia positioned to weather Trump tariffs, chip demand 'off the charts,' says Altimeter's Gerstner

Core Insights - Altimeter Capital CEO Brad Gerstner expresses confidence in Nvidia's ability to withstand President Trump's new tariff policies, indicating a shift from a defensive to a more optimistic investment stance [1] - The demand for Nvidia's GPUs is surging, driven by the artificial intelligence boom, as highlighted by commentary from major industry players like OpenAI and Google [2] Tariff Policy Impact - President Trump announced a "reciprocal tariff" policy with a 10% baseline tariff, affecting countries like China, Vietnam, and Taiwan with higher rates, leading to a significant drop in tech stocks, particularly the Nasdaq [3] - Nvidia is positioned favorably as semiconductors are exempt from these tariffs, which Gerstner views as a "wise exception" due to the critical role of AI [4] Company Performance - Nvidia's revenue has more than doubled in each of the past two fiscal years, particularly after the launch of OpenAI's ChatGPT in 2022, despite a recent stock price drop of over 20% this year [4] - Gerstner acknowledges concerns about a potential recession due to tariffs but remains bullish on Nvidia, suggesting that the negative impact from tariffs will be less severe compared to other sectors [5] Competitive Landscape - The U.S. must maintain its competitiveness in AI, as Nvidia's chips are designed domestically but manufactured in Taiwan due to fabrication limitations in the U.S. [5] - Gerstner emphasizes the importance of not hindering the U.S.'s ability to compete in the global AI race [6]