Renowned investor David Tepper has shown a strong interest in artificial intelligence (AI) as all of his top 10 holdings have close connections to AI. However, in the first quarter, Tepper sold shares of Amazon, Alphabet, Microsoft, Meta Platforms, and NVIDIA. He instead opted to buy more shares of Alibaba Group Holding, Oracle, and PDD Holdings.
Tepper made a significant increase in his Appaloosa Management portfolio’s position in Alibaba Group, making it the largest holding. The Chinese technology company overtook other tech giants like Amazon, Microsoft, Meta, and Nvidia after Tepper increased his share by nearly 159% in the first quarter. This decision has already paid off, as Alibaba’s shares have seen positive growth since the investment.
Another stock Tepper increased his position in was Oracle, which saw a 74% increase in holdings in the first quarter. The company’s strong momentum and focus on cloud business could be attractive to Tepper. Similarly, PDD Holdings, a Chinese e-commerce platform, saw a substantial increase in Tepper’s stake, showing the investor’s confidence in its long-term growth potential.
Tepper’s preference for these three AI stocks over the likes of Amazon, Alphabet, Microsoft, Meta, and Nvidia may be due to their cheaper valuations and growth potential. While uncertainties surrounding actions by the Chinese government may create some concern, Tepper seems optimistic about the long-term prospects of these investments.
Overall, investors may consider following Tepper’s lead in investing in these AI stocks, as he has a track record of making successful investment decisions. However, it’s essential to conduct thorough research and consider potential risks before making any investment decisions.
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https://finance.yahoo.com/news/billionaire-david-tepper-sold-amazon-094900172.html