Ross Gerber, the CEO of Gerber Kawasaki Wealth & Investment Management and a longtime Tesla bull, is making major portfolio shifts amid the latest market downturn. While Tesla has been a core holding in his investment strategy, he now sees limited upside for the EV giant and is reallocating capital into other high-potential opportunities.
A Bargain in Nvidia Despite Market Jitters
During a sharp sell-off that saw the Nasdaq Composite plunge 4%, its worst day since the 2022 bear market, Gerber seized the opportunity to buy shares of Nvidia (NASDAQ: NVDA). Despite recent concerns over profit margins and geopolitical headwinds, Nvidia’s valuation and growth prospects remain attractive to the seasoned investor.
“You could actually buy Nvidia at 20x earnings, and their expected earnings are projected to grow by 75% this year. Plus, they’re buying back stock,” Gerber noted. This perspective underscores his belief in Nvidia’s dominant position in the AI-driven semiconductor industry, which remains a critical area of growth.
JPMorgan and the Case for Bank Stocks
Beyond the AI sector, Gerber is also bullish on financials. He recently purchased shares of JPMorgan Chase & Co. (NYSE: JPM), citing the banking giant’s relatively cheap valuation and the prospect of a strong year ahead.
“Banks will have a pretty good year with less regulation, and banks are cheap,” Gerber emphasized. JPMorgan, America’s largest bank, currently trades at a forward price-to-earnings (P/E) ratio of 11.2x, a significant 45% discount to the S&P 500’s valuation multiple.
Betting on Meta’s AI and Advertising Strength
Gerber also sees opportunity in Meta Platforms (NASDAQ: META), which he purchased alongside Nvidia and JPMorgan. With its robust advertising business and significant investments in AI, Meta continues to position itself as a leader in digital transformation. The company’s aggressive share buybacks and expanding AI-driven ad monetization make it an attractive buy at current levels.
Diversification Beyond Tech: GE Vernova, TKO, and Disney
While tech stocks are a major focus for Gerber, he is also exploring opportunities in other sectors. He expressed a positive outlook on GE Vernova, General Electric’s renewable energy spin-off, as well as TKO Group (NYSE: TKO), the parent company of UFC and WWE, which is capitalizing on the surging demand for live sports entertainment. Additionally, Gerber remains optimistic about Disney (NYSE: DIS) as it works to revamp its content strategy and streaming business.
Bitcoin for Gold: A Strategic Shift
Perhaps the most surprising move Gerber has made is selling most of his Bitcoin holdings in favor of gold. After benefiting from Bitcoin’s post-election surge, he decided to lock in gains, citing the cryptocurrency’s extreme volatility.
“For my fund, we raised our allocation to 4%, made good money, and took profits. But I’ve learned my lesson with Bitcoin—it’s just too volatile,” Gerber explained. This strategic shift highlights his preference for stability in uncertain market conditions, as gold continues to be a historically reliable hedge against economic turbulence.
Final Thoughts
Ross Gerber’s latest investment moves reflect a broader strategy of finding value amid market corrections. While Tesla remains a key player in the EV space, he is redirecting capital toward high-growth sectors like AI, banking, and entertainment while balancing risk through strategic diversification. Investors looking for insights into market resilience can take cues from Gerber’s approach to capitalizing on downturns and investing with a long-term vision.
