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.
8. Oracle Corporation (NYSE:ORCL)
Appaloosa Management LP’s Stake: $97,867,000
Number Of Hedge Fund Holders: 97
Oracle Corporation (NYSE:ORCL) is one of the 10 best AI stocks to buy according to billionaire David Tepper. The corporation’s shares were upgraded to an “Outperform” rating from “Market Perform” on June 13 by BMO Capital Markets. This decision followed Oracle’s stronger-than-expected Q4 FY2025 earnings report and optimistic forward guidance. BMO also raised its price target to $235 from $200.
BMO’s analysts noted that Oracle’s Q4 FY2025 earnings report indicates a robust performance, especially compared to projections. Revenue increased by 11% year-over-year to $15.9 billion, against a consensus estimate of $15.58 billion. Adjusted EPS surpassed the expected $1.64 to reach $1.70.
The analysts also noted that Oracle’s forward guidance was more optimistic than anticipated. Management expects the company’s revenue for FY2026 to hit over $67 billion, 16% higher than in FY2025. The total cloud growth rate is expected to expand from 24% in FY2025 to over 40% in FY2026. Meanwhile, Oracle anticipates the cloud infrastructure growth rate to increase from 50% in FY2025 to over 70% in FY2026.
Oracle Corporation (NYSE:ORCL) is a global enterprise software and cloud computing company. It provides businesses, governments, and institutions with cloud-based applications, infrastructure, and database technologies. Its leading products include Oracle Cloud Infrastructure, Oracle Autonomous Database, and software suites like Oracle Fusion Cloud ERP, HCM, and NetSuite. Oracle also delivers services through its healthcare-focused Oracle Cerner unit.
7. Microsoft Corporation (NASDAQ:MSFT)
Appaloosa Management LP’s Stake: $191,448,900
Number Of Hedge Fund Holders: 284
Microsoft Corporation (NASDAQ:MSFT) is one of the 10 best AI stocks to buy according to billionaire David Tepper. Bloomberg reported on June 18 that the conglomerate is planning a new round of layoffs, this time targeting its sales division. The move is reported to be ready for implementation starting early next month.
This round of job cuts follows two others earlier in the year. The company cut around 6,000 roles in May, primarily impacting engineering and product positions. Earlier in January, there were also smaller cuts, which the firm said were performance-based. The latest round coincides with the end of Microsoft’s fiscal year on June 30. According to Bloomberg, this timing aligns with Microsoft’s historical pattern of announcing organizational changes around its fiscal year-end.
Bloomberg also says that Microsoft has not specified the scale of layoffs, but the numbers are likely to be in the thousands. What is clear, the Bloomberg report details, is that the primary driver for this job cut is Microsoft’s strategic shift towards increased investment in AI.
Microsoft Corporation (NASDAQ:MSFT) is a global technology company. It develops and sells software, cloud services, devices, and digital solutions for individuals and organizations. Its leading products include Microsoft 365, Windows, Azure cloud platform, LinkedIn, GitHub, and Xbox.
6. Uber Technologies, Inc. (NYSE:UBER)
Appaloosa Management LP’s Stake: $233,152,000
Number Of Hedge Fund Holders: 45
Uber Technologies, Inc. (NYSE:UBER) is one of the 10 best AI stocks to buy according to billionaire David Tepper. On June 17, the company announced a new product that aims to introduce a novel advertising format. Dubbed “Ride Offers,” the product allows brands to sponsor or discount user rides. “Ride Offers” will operate under Uber Advertising and be accessible to riders in New Zealand, Australia, Mexico, Brazil, the United Kingdom, Canada, and the United States.
According to Uber, “Ride Offers” will allow riders to benefit from discounted or even free rides funded by advertisers. On the other hand, advertisers will gain customer loyalty and brand affinity when they sponsor rides. The company also cites research from NRG, which indicates that 65% of Uber users agree that ads with direct discounts or money-off stand out. It also found that 64% of riders feel more positive about the brand offering such promotions.
Uber Technologies, Inc. (NYSE:UBER) is a global mobility and delivery platform. It operates through three main segments: Mobility (offers ridesharing, car rentals, micromobility, and public transit options), Delivery (for food, grocery, and retail delivery through Uber Eats and white-label logistics via Uber Direct), and Freight (a digital marketplace connecting shippers and carriers).
5. Vistra Corp. (NYSE:VST)
Appaloosa Management LP’s Stake: $270,112,000
Number Of Hedge Fund Holders: 102
Vistra Corp. (NYSE:VST) is one of the 10 best AI stocks to buy according to billionaire David Tepper. On June 19, Morgan Stanley lifted its price target for Vistra stock to $186 from $178 while maintaining an “Overweight” rating. Analyst David Arcaro communicated this update.
Arcaro cited three reasons for the update, with the primary factor being the strong fundamental backdrop for the power sector, specifically the rising demand for electricity from AI-driven data centers. He noted a “demand pull” coupled with upward pressure on wholesale power prices.
The other reason is Vistra’s strategic positioning. Vistra operates the second-largest fleet of competitive nuclear power plants in the U.S. The plants offer 24/7 and zero-carbon power, which is crucial for data centers. The company also has substantial battery energy storage capacity, such as its Moss Landing facility, which helps optimize energy delivery and meet peak demand.
The third reason for the upgrade is Vistra’s financial discipline and shareholder returns. Arcaro noted that the company has been actively returning capital to shareholders and has hedged approximately 95% of its expected generation for 2025 and 2026.
Vistra Corp. (NYSE:VST) is an American integrated power company. It generates and sells electricity and natural gas through five segments: Retail, Texas, East, West, and Asset Closure. Its portfolio includes about 41,000 megawatts of capacity from natural gas, nuclear, coal, solar, and battery storage assets.
4. Alphabet Inc. (NASDAQ:GOOGL)
Appaloosa Management LP’s Stake: $314,022,300
Number Of Hedge Fund Holders: 227
Alphabet Inc. (NASDAQ:GOOGL) is one of the 10 best AI stocks to buy according to billionaire David Tepper. YouTube, a segment of Alphabet’s Google Services division, announced on June 18 that it was introducing shopping product stickers in Shorts. This feature within YouTube’s Shorts format is an update that, as per the announcement, aims to simplify the purchasing process for viewers and increase earning potential for creators.
Initially, YouTube Shorts had a “Shopping” button, but the product team felt it was “less prominent.” As such, the updated version is more interactive and visual. The new stickers directly indicate that products within the Short are available for purchase. A sticker is automatically generated based on the first tagged product in the Short, and users can resize and reposition it via the mobile app. When multiple products are tagged, a down arrow on the sticker allows users to view and explore the complete product list.
The YouTube team said that in a trial conducted in the U.S. in May 2025, Shorts featuring these new product stickers saw over a 40% increase in product clicks compared to those with just the traditional Shopping button.
Alphabet Inc. (NASDAQ:GOOGL) is a California-based global technology holding company. It is the parent of several popular brands, including Google Search, Google Maps, YouTube, Gmail, Chrome, and Android. The company also offers cloud services and makes hardware. It also invests in emerging areas such as self-driving cars (Waymo), health tech (Verily), and internet access (Google Fiber).
3. Meta Platforms, Inc. (NASDAQ:META)
Appaloosa Management LP’s Stake: $316,998,000
Number Of Hedge Fund Holders: 273
Meta Platforms, Inc. (NASDAQ:META) is one of the 10 best AI stocks to buy according to billionaire David Tepper. On June 18, The Information disclosed that Meta was in advanced discussions to recruit prominent AI investors Nat Friedman, former CEO of GitHub, and Daniel Gross, CEO of Safe Superintelligence. The move is part of Meta’s efforts to bolster its AI capabilities.
Friedman is already part of Meta’s external Advisory Group, providing technology and product development input. On the other hand, Gross is the head of a $32 billion AI startup that Meta previously attempted to acquire but was rebuffed. If Meta sees the hires through, The Information details that the new additions will report to Alexandr Wang, founder of Scale AI. Scale AI recently became a part of Meta after the tech giant acquired a 49% stake worth $14.3 billion. These efforts are geared towards materializing a new unit at Meta called “superintelligence.”
Meta Platforms, Inc. (NASDAQ:META) is a global social technology company. It builds and operates digital platforms that help people connect, share, and discover content. The tech giant operates some of the world’s most recognizable social media platforms, including Threads, Messenger, WhatsApp, Instagram, and Facebook. Meta also develops virtual and augmented reality hardware and software through its Reality Labs segment.
2. JD.com, Inc. (NASDAQ:JD)
Appaloosa Management LP’s Stake: $331,016,000
Number Of Hedge Fund Holders: 66
JD.com, Inc. (NASDAQ:JD) is one of the 10 best AI stocks to buy according to billionaire David Tepper. On June 18, JD.com issued an announcement that sent ripples through China’s online travel and services industry. In the announcement, the company said that hotel merchants joining its JD Hotel PLUS Membership Program will enjoy up to three years of zero commission.
The open letter to hotel merchants was JD.com’s way of launching a deeper foray into China’s hotel and travel industry. JD.com stated it will focus on providing supply-chain services to lower operational costs and enhance guest experiences. The company’s founder, Richard Liu, has emphasized that the core logic is “supply chain optimization” to compress backend costs.
This announcement dealt a blow to major players in the sector. For instance, Trip.com Group, China’s leading online travel agency, saw its shares plunge approximately 5% in Hong Kong trading. Similarly, Meituan, which offers food delivery and travel-booking services, saw its stock slide nearly 4%. Other online travel platforms like Tongcheng Travel also experienced significant drops, with some falling over 9%.
JD.com, Inc. (NASDAQ:JD) is a Chinese e-commerce and supply chain technology company. It operates through segments like JD Retail, JD Logistics, JD Health, JD Industrials, and JD Technology. The company sells various products, including electronics, home appliances, groceries, apparel, and healthcare items, through its online and offline platforms. JD also provides logistics and cloud- and AI-driven supply chain services.
1. Amazon.com, Inc. (NASDAQ:AMZN)
Appaloosa Management LP’s Stake: $477,552,600
Number Of Hedge Fund Holders: 328
Amazon.com, Inc. (NASDAQ:AMZN) is one of the 10 best AI stocks to buy according to billionaire David Tepper. On June 19, Bloomberg revealed that the company is implementing a strict return-to-office policy. The report said that Amazon requires most remote employees to relocate closer to a designated office hub (Seattle, Arlington (VA), and Washington, D.C.) within 60 days or face potential termination.
This policy primarily targets employees whose managers had previously approved them to work remotely, either partially or fully. Bloomberg established that there are limited exceptions, such as for sales and data center employees. This strict ultimatum follows Amazon’s earlier announcement in May 2025 that most corporate employees would be required to work in the office at least three days a week.
CEO Andy Jassy has been a strong proponent of in-office work, stating in a memo that it “makes the team more effective.” He has emphasized that innovation and collaboration are often fostered more effectively through in-person interactions. The initial three-day-a-week mandate faced resistance from some employees, leading to protests and a petition with thousands of signatures. Despite this, Amazon has maintained its stance.
Amazon.com, Inc. (NASDAQ:AMZN) is a global e-commerce and cloud services company. Its online and physical stores sell several products, including electronics, apparel, groceries, and media. It also offers services like Prime memberships, advertising, and digital content. Its AWS segment provides businesses, governments, and developers with cloud computing, storage, AI, and analytics solutions.
While we acknowledge the potential of Amazon.com, Inc. (NASDAQ:AMZN) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMZN and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: Goldman Sachs China Stocks: 10 Stocks to Buy and 10 Undervalued Blue Chip Stocks Analysts Recommend for Smart Investing.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email below.
