By Prosper Junior Bakiny
Publication Date: 2026-03-09 13:24:00
Investors looking for ways to capitalize on the rapidly growing artificial intelligence (AI) industry may want to pay attention to the portfolio moves of some of the top names on Wall Street. Take David Tepper, the founder and president of Appaloosa Management, a hedge fund that has delivered excellent returns for decades. In the fourth quarter, the fund made some noteworthy sales and purchases.
For instance, it trimmed its stake in AI leader Nvidia by about 10.5% while at the same time boosting its stake by 28.8% in another leading AI company: Alphabet (GOOG 0.87%) (GOOGL 0.88%). Here’s why it could be a good idea to, at the very least, follow Tepper’s lead and invest in the Google parent.
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Alphabet has been on fire
Over the past five years, Alphabet’s shares have climbed by 190%, compared to a 75.7% gain for the S&P 500. That strong outperformance is all the more impressive considering that the tech leader has faced some headwinds. When OpenAI launched ChatGPT, some investors feared that AI chatbots would cut into the overall use of Alphabet’s Google search engine. Further, Alphabet was facing antitrust lawsuits that could have resulted in it being compelled to spin off key parts of its business. Yet it has navigated both obstacles.
AI turned out to be a strength, not a weakness, for Alphabet. It launched its own AI chatbot and added an AI mode and AI overviews to Google search. These efforts have helped it grow user engagement and…
