David Tepper, known for deep-value bets, saw success with Alibaba stock doubling and Intel surging since his hedge fund started buying. Tepper’s contrarian approach led to investments in beaten-down AI stocks like Alibaba and Intel, which made up 15% of his portfolio. However, he has since sold off part of his stake in Alibaba.

Alibaba, representing 12.4% of Appaloosa’s portfolio, faced challenges in 2022 but has rebounded. Tepper’s bet on the Chinese tech giant paid off with a potential return of over 100%. However, with the stock no longer a bargain, Appaloosa sold 2.2 million shares in the second quarter. Alibaba’s growth, driven by AI investments, led to its success.

Intel, 2.8% of the fund, symbolizes deep value in the tech sector. After struggles and management changes, including bringing in Lip-Bu Tan as CEO, the company’s stock nearly doubled in value. Tepper’s recent investment in Intel paid off, but the business still faces challenges in growth and volatility ahead.

Read more at Nasdaq: Billionaire David Tepper Has 15% of His Portfolio Invested in These 2 Artificial Intelligence (AI) Stocks