From Nasdaq:

Billionaire David Tepper runs Appaloosa Management, a hedge fund that has outperformed its industry peers and the broader stock market since it was founded in 1993. The fund beat the S&P 500 by 15 percentage points over the last three years, enhancing its reputation and making its investment choices worth studying.

Tepper currently has 28.2% of his Appaloosa portfolio invested in three artificial intelligence (AI) stocks: 8.8% in Nvidia, 9.4% in Amazon, and 10% in Microsoft, demonstrating high conviction in their potential. This underscores the importance of understanding these three brilliant AI stocks for investors.

Nvidia is a strong presence in graphics chips for gaming and professional design, and its data center accelerators dominate the market. With a growing software and services business, Nvidia is well positioned for future growth and increased market share in AI computing and CPUs.

Amazon’s strengths lie in e-commerce, digital advertising, and cloud computing, leading the way in various areas such as infrastructure-as-a-service and cloud AI developer services. With its product pipeline packed with AI innovations, Amazon is set for double-digit annual sales growth through the end of the decade, making its current valuation of 2.9 times sales very reasonable.

Microsoft holds a significant share of software-as-a-service spending and cloud infrastructure and platform services spending. With AI capabilities incorporated into its enterprise software and cloud computing business, Microsoft is a strong investment option with a good shot at double-digit sales growth through the end of the decade. Waiting for a cheaper price may be a prudent course of action, though buying a small position today is also an option.



Read more: Billionaire Investor David Tepper Has 28% of His Portfolio Invested in 3 Brilliant AI Growth Stocks