From Yahoo Finance: 2025-03-29 19:21:00

David Tepper’s investment theme revolves around buying everything related to China, believing the country’s economy is poised for growth despite the ongoing trade dispute with the US. Appaloosa Management LP has significant exposure to Chinese equities, benefiting from Beijing’s measures to boost economic growth.

China’s economy surpassed expectations with 5.4% growth in Q4 2024, thanks to stimulus policies. Investors await further fiscal assistance for the real estate sector and consumer demand. Tepper’s focus on Chinese equities contrasts with concerns of US tariffs impacting them.

US equities face pressure due to trade war uncertainties and the Federal Reserve’s reluctance to cut rates. The S&P 500 has dropped nearly 3% in Q1 2025, the first quarterly decline since July 2023. Disappointing financial results and weak guidance contribute to the market selloff.

Analysts express concern over US corporate profits amid Trump administration policies heightening the risk of a global trade conflict. Earnings growth for S&P 500 firms is projected at 7.7%, the lowest since Q3 2023. A broad economic slowdown poses a significant challenge for companies.

Qualcomm Inc (QCOM) is a top growth stock in David Tepper’s portfolio, known for its chipsets and processors. The company’s revenue growth has been strong, with double-digit increases in recent quarters. QCOM’s leadership in smartphone chipsets and AI-enabled products position it as a promising investment.

QCOM’s revenue for fiscal Q1 rose 17% to $11.67 billion, driven by strong sales of high-end Android smartphones. The company’s revenue from the IoT sector and automotive industry also saw significant growth. Despite QCOM’s potential, AI stocks are seen as more promising for higher returns in a shorter timeframe.

Read more: Is Qualcomm Inc (QCOM) the Top Growth Stock in David Tepper’s Portfolio?