In this article, we discuss Billionaire David Tepper’s 10 Stock Picks with Huge Upside Potential.
The S&P 500 has returned 12.29% over the past 12 months as of May 2, 2025. In the same period, hedge fund manager David Tepper and his team at Appaloosa Management LP managed to return 26.29%. The performance gap widens dramatically when you stretch to three years—Appaloosa’s return in that period is 84.79% against the S&P 500’s 11.02%.
Billionaire David Alan Tepper has always been an interesting character. Some, especially those who support the Carolina Panthers, see him as a villain. But National Football League (NFL) owners are often heavily scrutinized and critiqued. Panthers fans may not endorse the billionaire’s decision-making, but his net worth ($21.3 billion as of May 2025) clearly shows that he makes better investment decisions than most investors. And he’s done this for a long time because Appaloosa has posted an average annual return of more than 25% since it was founded 32 years ago.
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But even within investment circles, Tepper may sometimes come across as unconventional. When Appaloosa’s 13F filing for Q4 2024 became public, it made for an interesting reading. Tepper had spent the quarter going all in on Chinese stocks. He raised his stake in several Chinese tech stocks to such a point that one of the companies accounts for about 16% of the hedge fund’s holdings.
The interesting – and perhaps unconventional – bit in Tepper’s bets is that they happened when a tariff war was (and still is) brewing between the US and China. When asked to comment on this reality, Tepper said: “I don’t care. You know I’m sitting here in a suit. My counter bet is I don’t care.” In other words, the billionaire hedge fund manager doesn’t care about tariffs.
But should he? Analysis shows that Trump’s tariffs impacted the tech stocks in the US as well as in China. For instance, Trump’s escalation of tariffs on Chinese imports to 145% by April 2025 led to a sharp initial drop in tech indexes in both countries. The S&P 500 Information Technology Index dropped by 9.76%, and the CSI Overseas China Internet Index pared by 18.94%. Between April 3 and May 2, 2025, the US tech index increased by 10.84%. In the same period, the Chinese tech index declined by 2.55%. One can therefore, conclude that the tariffs are hurting Chinese tech stocks more than US tech stocks.
This perspective is critical because, as noted earlier, Tepper’s equities portfolio is dominated by US and Chinese tech stocks. One Chinese tech giant accounts for about 16% of the portfolio. To an investor without the billionaire hedge fund manager’s experience and shrewdness, this reality is concerning.
But this particular scenario is what defines Tepper: he takes risks, which, judging by Appaloosa’s return profile, often pay off. That’s why this post highlights the top 10 stocks in the billionaire’s portfolio with huge potential.
Our Methodology
We reviewed Appaloosa Management LP’s SEC Q4 2024 13F filings to pick stocks for this list. Our focus excluded non-equity holdings such as options and ETFs. From the result, we obtained the average 12-month analyst price target for each stock as of May 5, 2025. We then focused only on stocks with an upside potential of at least 30% and then picked the top 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).
Billionaire David Tepper’s 10 Stock Picks with Huge Upside Potential
10. ASML Holding N.V. (NASDAQ:ASML)
Appaloosa Management Stake Value: $110,892,800
Upside Potential as of May 5: 31.10%
Number of Hedge Fund Holders: 86
ASML Holding N.V. (NASDAQ:ASML) is a Dutch semiconductor manufacturing equipment company. It is the world’s only manufacturer of extreme ultraviolet (EUV) lithography machines and serves major semiconductor manufacturers globally, including TSMC (NYSE:TSM), Samsung, and Intel (NASDAQ:INTC).
In ASML’s (NASDAQ:ASML) Q1 2025 earnings report, total net sales reached €7.7 billion ($8.72 billion), and net income came in at €2.4 billion ($2.73 billion). The company achieved a gross margin of 54.0%, exceeding guidance for two reasons: a favorable EUV product mix and achievement of performance milestones. At the same time, quarterly net bookings reached €3.9 billion ($4.42 billion), of which €1.2 billion ($1.36 billion) was for EUV systems. ASML is expanding globally with new investments. In April 2025, it invested NT$2.62 billion (US$81.6 million) in its Taiwan subsidiary, Cymer, Inc., to boost installation, sales, and maintenance of laser equipment and semiconductor parts.
However, the company is also navigating potential challenges resulting from recent tariff announcements. According to CEO Christophe Fouquet, the tariffs have “increased uncertainty in the macro environment.” Nevertheless, the company maintains a positive outlook. Management states that “artificial intelligence continues to be the primary growth driver in our industry” while acknowledging that AI has created “a shift in the market dynamics that benefits some customers more than others.”
On April 17, 2025, Wells Fargo analysts adjusted their outlook on ASML Holding N.V. (NASDAQ:ASML) shares. They lowered the price target to $840 from the previous $860 while maintaining an Overweight rating on the stock. The research firm cited growing concerns about the potential impact of US tariffs on ASML’s (NASDAQ:ASML) business operations.
9. Wynn Resorts, Limited (NASDAQ:WYNN)
Appaloosa Management Stake Value: $43,080,000
Upside Potential as of May 5: 32.03%
Number of Hedge Fund Holders: 64
Wynn Resorts, Limited (NASDAQ:WYNN) is a luxury casino and hotel company. It operates high-end properties in Las Vegas, Macau, and Boston and is known for premium resort experiences. The company operates under the Wynn and Encore brands.
In Q4 2024, Wynn Resorts, Limited’s (NASDAQ:WYNN) quarterly operating revenues were $1.84 billion, and net income reached $277.0 million or $2.29 per diluted share. CEO Craig Billings highlighted that they set “another full-year record for Adjusted Property EBITDAR for the Company in 2024, with another annual record in Las Vegas.” During the quarter, the company also focused on returning capital to shareholders through both cash dividends and the repurchase of $200 million in stock.
However, recent gaming trends present mixed signals for Wynn Resorts, Limited’s (NASDAQ:WYNN) business. In March 2025, gaming wins on the Las Vegas Strip declined 4.8% to $681.7 million. Table games displayed the most significant weakness—a 16.7% year-over-year drop despite a solid win percentage of 12.4%. Analysts have pointed to weak Asian tourism as a potential headwind. Meanwhile, Macau’s gaming bureau reported April gross gaming revenue up 1.7% year-over-year, which could benefit Wynn’s (NASDAQ:WYNN) significant operations in the region.
Wynn Resorts, Limited (NASDAQ:WYNN) has a Strong Buy rating from 12 analysts, with 9 buy and 3 hold recommendations. The average price target is $108.91, ranging from $89.00 to $132.00, indicating a 32.03% upside from the current price.
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