Billionaire David Tepper has 25% of his portfolio invested in strong AI stocks

From Nasdaq: 2024-06-18 05:12:00

David Tepper’s Appaloosa is the 12th most profitable hedge fund in history, with a 58% return in the three-year period ending March 2024, outperforming the S&P 500. Tepper had 25% of his portfolio in AI stocks: 10% in Amazon, 8.7% in Microsoft, and 5.9% in Nvidia, all strong picks according to Tepper’s confidence.

Amazon showed strong Q1 results with a 13% revenue increase, excellent net income, and market leadership in three key areas: online marketplace, retail media, and cloud services. With a consensus estimate of 23% annual EPS growth, Amazon presents as a compelling investment opportunity, even at 51.5 times earnings.

Microsoft continues to outperform, reporting 17% revenue growth, increased cloud computing demand, and a strong position in generative AI with Azure OpenAI Service. Wall Street expects 13.7% annual EPS growth, though the stock may be considered expensive at 38.8 times earnings.

Nvidia reported impressive first-quarter results with 262% revenue growth and dominant market share in data center GPUs and AI chips. The company’s full-stack accelerated computing platform and continuous innovation make it a top contender for investment, projecting 32% annual EPS growth despite its slightly high valuation at 76.7 times earnings.



Read more at Nasdaq: Billionaire David Tepper Has 25% of His Portfolio Invested in 3 Brilliant AI Stocks