In this article, we will look at the 10 Best AI Stocks to Buy According to Billionaire David Tepper.
Billionaire David Tepper is a legendary investor who’s made his fortune on Wall Street via Appaloosa Management LP. Forbes estimates Tepper’s net worth to be about $21.3 billion. His hedge fund, Appaloosa, has registered some extraordinary successes in the market, having gained $2.7 billion in a single year in 2023.
Appaloosa’s performance speaks volumes about the investment skills of a man often known as a contrarian. For instance, when others were not looking, Tepper went all in on Chinese stocks. He has done the same with artificial intelligence (AI) stocks. According to Appaloosa’s 13F filing for Q1 2025, the billionaire is pulling back from some AI stocks. One of the reasons he gave for cutting his stake in a top AI stock was that the stock was “too high”, although he acknowledged that the company is great.
And now Tepper is skeptical about AI’s energy problem. After nuclear power was fronted as a possible solution, Tepper termed some projections crazy. Instead, he believes natural gas could be a great solution. “If you’re going to meet the power needs of what they need for A.I., you’re going to have to use natural gas,” he said.
This article presents Tepper’s 10 best AI stocks picks.
David Tepper
Our Methodology
To create this list, we reviewed Appaloosa Management’s 13F holdings as of Q1 2025, focusing on AI stocks, defined as companies that develop or use AI technology extensively in their operations. From the result, we ranked the stocks based on the value of Appaloosa’s stake and then picked the first 10. This list is in ascending order.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Best AI Stocks to Buy According to Billionaire David Tepper
10. NVIDIA Corporation (NASDAQ:NVDA)
Appaloosa Management LP’s Stake: $32,514,000
Number Of Hedge Fund Holders: 212
NVIDIA Corporation (NASDAQ:NVDA) is one of the 10 best AI stocks to buy according to billionaire David Tepper. On June 20, TerraPower—a nuclear energy startup founded by Bill Gates—announced a $650 million funding round to support construction of its first commercial power plant in Wyoming.
Backers include existing investors like Gates and HD Hyundai, alongside Nvidia’s NVentures, which marked its first step into the energy sector. Though regulatory approvals are still pending, the company expects a green light next year. The new Natrium reactor aims to deliver 345 megawatts of electricity, blending the scale of traditional reactors with the flexibility of emerging small modular designs.
What sets Natrium apart is its molten sodium cooling system, enabling continuous operation even when electricity demand is low. Excess heat is stored and later used to meet spikes in demand, helping bridge gaps in solar and wind energy. TerraPower shifted to this design after scrapping an earlier plan and says it can complete a reactor within three years of the concrete pour. However, total costs could hit $4 billion, with the U.S. Department of Energy potentially covering half. Despite the price tag, Natrium could signal a new, more adaptable era for nuclear power.
NVIDIA Corporation (NASDAQ:NVDA) is a global leader in computing and AI infrastructure, offering platforms like DRIVE, Jetson, and DGX Cloud for data centers, robotics, and autonomous systems. Its Graphics segment powers gaming and professional visualization with GeForce and RTX GPUs, along with Omniverse for industrial AI, serving industries from entertainment to automotive through a vast network of partners and providers.
9. ASML Holding N.V. (NASDAQ:ASML)
Appaloosa Management LP’s Stake: $46,384,100
Number Of Hedge Fund Holders: 80
ASML Holding N.V. (NASDAQ:ASML) is one of the 10 best AI stocks to buy according to billionaire David Tepper. On June 17, Bernstein initiated coverage of ASML’s shares. The firm rated the stock as “Market Perform” and set a €700.00 ($806) price target, nearly 6% upside from the stock’s current trading price ($761 as of June 20).
The analysts justified their position, saying that ASML’s extreme ultraviolet (EUV) lithography business is not doing well. They noted that EUV lithography is gobbling up a massive portion of the company’s leading-edge logic capital expenditure (capex), but with diminishing returns. Though, Bernstein analysts expect EUV capex intensity to decline starting at the 3 nm logic node and D1d DRAM node.
Bernstein acknowledges ASML’s “undisputed” dominance in EUV lithography despite these concerns. The analysts say the company holds a near-monopoly in this technology. Furthermore, ASML’s fundamentals are solid. For instance, the company reported a 52% gross profit margin and 17.7% revenue growth in the last twelve months.
ASML Holding N.V. (NASDAQ:ASML) is a Dutch semiconductor equipment company. It designs and sells advanced photolithography machines used to make microchips, focusing on extreme ultraviolet (EUV) and deep ultraviolet (DUV) systems. Its major products include EUV scanners, DUV immersion tools, and metrology and inspection systems like YieldStar and HMI e-beam tools.