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

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1. Micron Technology, Inc. (NASDAQ:MU)

Appaloosa Management Stake Value: $100,992,000

Upside Potential as of May 5: 55.56%

Number of Hedge Fund Holders: 94

Micron Technology, Inc. (NASDAQ:MU) designs and manufactures memory and storage products. Its main products include types of memory chips such as DRAM, NAND flash memory, and emerging solutions like high-bandwidth memory (HBM) and LPDDR. These components are essential for storing data in many types of devices. In April 2025, it reorganized into four business units—Cloud Memory, Core Data Center, Mobile & Client, and Automotive & Embedded—to leverage AI growth across all sectors.

In Q2 2025, Micron’s (NASDAQ:MU) revenue touched $8.05 billion, a 38% growth from the same period last year. GAAP net income reached $1.58 billion ($1.41 per diluted share), while non-GAAP net income was $1.78 billion ($1.56 per diluted share). Operating cash flow improved significantly to $3.94 billion compared to $1.22 billion for the same period last year. Notably, the company’s HBM revenue crossed the $1 billion milestone in the quarter. Also, data center revenue tripled from a year ago due to strong execution and robust AI demand.

On April 30, 2025, Citi analyst Christopher Danely reiterated a Buy rating and $110 price target on Micron Technology, Inc. (NASDAQ:MU). The decision followed a report by TrendForce, a research firm, that uncovered positive developments in DRAM pricing. TrendForce stated that PC DRAM prices are expected to rise 3%-8% quarter-on-quarter in Q2 2025, exceeding their prior forecast of flat growth.

While we acknowledge the potential of Micron Technology, Inc. (NASDAQ:MU) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MU but that trades at less than 5 times its earnings check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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