Billionaire Investor David Tepper Has 47% of His Portfolio Invested in 5 Superb Artificial Intelligence (AI) Growth Stocks

Billionaire David Tepper runs Appaloosa Management, the hedge fund he founded in 1993, and has long been one of the brightest stars on Wall Street. He has been called “arguably the greatest hedge fund manager of his generation,” by Forbes. Tepper has “consistently outperformed his industry peers and the broader global markets since [Appaloosa’s] inception,” according to Tepper’s bio posted by Carnegie Mellon University.

Over the past three years, Appaloosa has outperformed the S&P 500 by 15%, no small feat, given the macroeconomic backdrop. His strong track record suggests that Tepper’s stock picks might be worth further review.

Investors might be surprised to discover that, to close out the third quarter, Tepper had a whopping 47.1% of Appaloosa’s portfolio invested in just five artificial intelligence (AI) stocks:

• Meta Platforms (NASDAQ: META): 11.6%

• Microsoft (NASDAQ: MSFT): 10.2%

• Amazon (NASDAQ: AMZN): 9.4%

• Nvidia (NASDAQ: NVDA): 8.8%

• Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG): 7.2%

Let’s take a look at Tepper’s five top picks to see why he’s so heavily weighted toward these AI stocks.

1. Meta Platforms

Meta Platforms might seem a surprising choice, but the company has a long history of using AI to bolster its business. The vast majority of Meta’s revenue comes from digital advertising, and AI can more accurately surface relevant ads and other content on its social media sites.

As the world’s second-largest digital advertiser, the recent rebound in ad spending has bolstered the company’s fortunes. Meta has also released several AI-powered tools to help advertisers more accurately connect with their target market. Perhaps as importantly, the company developed a leading open-source AI model — Llama (Large Language Model Meta AI) — which is available on all the major cloud infrastructure platforms, resulting in an entirely new revenue stream for the company.

At just 20 times forward earnings, Meta is selling at a discount compared to the broader…