Billionaire David Tepper’s 10 Stock Picks with Huge Upside Potential

4. NVIDIA Corporation (NASDAQ:NVDA)

Appaloosa Management Stake Value: $91,317,334

Upside Potential as of May 5: 44.30%

Number of Hedge Fund Holders: 223

NVIDIA Corporation (NASDAQ:NVDA) is a tech company that makes GPUs and SoCs, essential for AI and computing. It started with PC graphics but now leads the AI revolution. Investor David Tepper sees NVIDIA as a key semiconductor stock, along with AMD and Qualcomm. Institutional investors have shown strong interest, with Appaloosa Management holding a $91.32 million stake, making up 1.4% of its portfolio.

NVIDIA Corporation (NASDAQ:NVDA) dominates AI hardware with 93% of the global GPU market, led by its fast, efficient Blackwell processor, widely used by Google, Meta, and Tesla. Beyond chips, it’s expanding into AI-driven drug discovery and autonomous vehicles, fueling future growth as AI demand surges. But NVIDIA’s (NASDAQ:NVDA) current leadership position may not hold forever. According to a report by Rest of World, Chinese chip makers are rapidly catching up in their technological capabilities. This is happening even as the firms continue to fight off the effects of trade restrictions. Companies like HiSilicon (Huawei’s chip design arm) have made significant advances, with Huawei claiming its 910B AI chip is “roughly comparable” to NVIDIA’s A100 in some tests.

On April 30, 2025, Seaport Global Securities issued a rare Sell rating on NVIDIA Corporation (NASDAQ:NVDA). Analyst Jay Goldberg set a $100 price target, the lowest on Wall Street, citing several concerns that could impact the company’s growth trajectory. These include the likelihood of AI budgets slowing in 2026 and major customers developing their own chips to reduce dependency on NVIDIA (NASDAQ:NVDA).