5 Best AI Stocks to Buy for 2026 According to Billionaire David Tepper

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1. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 381

Appaloosa Management Equity Stake: $753.12 Million

Alibaba Group Holding Limited (NYSE:BABA) is one of the best AI stocks to buy for 2026, according to billionaire David Tepper. On May 8, Alibaba Group Holding Limited (NYSE:BABA) was on the defensive, refuting claims that it was one of the beneficiaries of billions of dollars’ worth of Super Micro computer servers containing Nvidia chips smuggled into China.

Bloomberg reported that a key company behind Thailand’s national AI effort had smuggled the servers containing Nvidia chips and sold them to Alibaba, among other end customers. The allegations follow US prosecutors reiterating early in the year that Super Micro’s co-founder had worked to divert AI semiconductors in violation of US trade rules.

Alibaba insists it has no business relationship with Super Micro, OBON, or any third-party brokers that deal in servers with Nvidia chips under US control. It has also refuted claims that it is involved in the alleged smuggling activities. The Chinese AI powerhouse insists it maintains a compliance-first approach with its data center operations.

Alibaba Group Holding Limited (NYSE:BABA) is a leading AI player, developing its own large language models, integrating AI into its e-commerce and logistics, and offering cloud-based AI services. Its strategy centers on open-source approaches and cloud computing to boost adoption.

While we acknowledge the potential of BABA to grow, 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 BABA and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 9 Best Green Energy Penny Stocks to Invest In and Top 10 Tech Stocks in Louis Navellier’s Portfolio.

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