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.
8. QUALCOMM Incorporated (NASDAQ:QCOM)
Appaloosa Management Stake Value: $122,896,000
Upside Potential as of May 5: 32.80%
Number of Hedge Fund Holders: 79
QUALCOMM Incorporated (NASDAQ:QCOM) is a global wireless technology company. It designs and manufactures semiconductor chips for smartphones, automotive systems, Internet of Things (IoT) devices, and networking equipment. The company operates through Qualcomm CDMA Technologies (QCT) and Qualcomm Technology Licensing (QTL) segments.
QUALCOMM’s (NASDAQ:QCOM) Q2 2025 financial report indicates that the company is on a strong growth trajectory. During the quarter, non-GAAP revenues reached $10.8 billion, up 15% year-over-year, and non-GAAP earnings per share touched $2.85, a 17% increase from the same period last year. The QCT segment accounted for much of this income, posting $9.5 billion in revenues. QUALCOMM Incorporated (NASDAQ:QCOM) is increasing its target for total return of capital to stockholders to 100% of free cash flow in fiscal 2025. It also raised its quarterly cash dividend to $3.56 annualized payout per share.
Even with the stranglehold on the wireless technology industry, QUALCOMM Incorporated (NASDAQ:QCOM) is still working on initiatives to strengthen its dominance. In Q2 of fiscal year 2025, the company introduced several groundbreaking products and formed strategic partnerships. It announced the Qualcomm X85 5G Modem-RF platform, described as “the world’s most advanced modem-to-antenna system.” In the industrial IoT space, QUALCOMM (NASDAQ:QCOM) acquired Edge Impulse Inc. to enhance its AI capabilities.
On May 1, 2025, Susquehanna lowered its price target on QUALCOMM (NASDAQ:QCOM) from $210 to $190 but kept a Positive rating on the shares. The analysts said in a research note that while the company’s financial status is robust, the future might be shaky because they may lose up to 30% of the i17 modem share to Apple (NASDAQ:AAPL).
7. Alibaba Group Holding Limited (NYSE:BABA)
Appaloosa Management Stake Value: $1,004,181,367
Upside Potential as of May 5: 32.90%
Number of Hedge Fund Holders: 107
Alibaba Group Holding Limited (NYSE:BABA) is a Chinese multinational technology company. Its core business is e-commerce, where it operates through Alibaba.com, Taobao, and Tmall. The company also offers cloud computing through Alibaba, supports global logistics via Cainiao Smart Logistics, and is involved in fintech via Ant Group.
The Chinese tech giant has been aggressively expanding and innovating across multiple business segments. On May 2, 2025, the company launched the Taobao Instant Commerce initiative, a nationwide fast-delivery service that challenges competitors like JD.com (NASDAQ:JD). Through Ant Group, Alibaba Group Holding Limited (NYSE:BABA) has entered the brokerage business by acquiring a 50.55% controlling stake in Bright Smart Securities & Commodities Group for $362.26 million. Additionally, Alibaba (NYSE:BABA) released Qwen3 on April 28, 2025. This is a new family of AI models that reportedly outperform competing models from companies like OpenAI and Google in areas such as coding and math-based problems.
Despite these positive developments, Alibaba Group Holding Limited (NYSE:BABA) faces significant regulatory headwinds, particularly in the United States. Two Republican lawmakers have urged the US Securities and Exchange Commission to delist Chinese companies. This development has reignited investor concerns over the possible forced delisting of Chinese companies from US exchanges amid escalating trade tensions.
On April 14, 2025, Barclays reiterated its Overweight rating on the stock. The analysts also maintained the $180.00 price target. According to the analysts, Alibaba’s (NYSE:BABA) continuous acceleration of its cloud business is a significant factor in their positive outlook.
6. Energy Transfer LP (NYSE:ET)
Appaloosa Management Stake Value: $96,279,659
Upside Potential as of May 5: 38.57%
Number of Hedge Fund Holders: 37
Energy Transfer LP (NYSE:ET) is one of North America’s largest and most diversified midstream energy companies. It transports and stores natural gas, natural gas liquids (NGLs), refined products, and crude oil. The company also has investments in related operations, including Sunoco LP and USA Compression Partners. On April 23, 2025, Energy Transfer (NYSE: ET) raised its quarterly distribution to $0.3275 per unit, a 3% increase from last year, reflecting strong cash flow and growth confidence.
Just two weeks ago, Energy Transfer LP (NYSE:ET) had signed an agreement with MidOcean Energy to jointly develop its Lake Charles LNG export facility. The terms dictate that MidOcean Energy will fund 30% of the construction costs and be entitled to receive 30% of the LNG production (approximately 5.0 million tons per annum). If the project reaches a positive final investment decision (FID), the export facility will be constructed on an existing brownfield regasification facility site. This will capitalize on Energy Transfer’s (NYSE:ET) existing LNG storage tanks, deepwater berths, and pipeline infrastructure.
On April 29, 2025, Mizuho Securities adjusted its outlook on Energy Transfer (NYSE:ET), reducing the price target from $24.00 to $22.00 while maintaining an Outperform rating. The analysts attributed this reassessment to the company’s fiscal year 2025 adjusted EBITDA guidance coming in below expectations and a significant increase in anticipated growth capital expenditures.
5. UnitedHealth Group Incorporated (NYSE:UNH)
Appaloosa Management Stake Value: $88,272,570
Upside Potential as of May 5: 41.28%
Number of Hedge Fund Holders: 150
UnitedHealth Group Incorporated (NYSE:UNH) is a diversified healthcare company. It operates through two main segments: UnitedHealthcare (for health insurance and benefits) and Optum (for health services and technology solutions). This company is one of the largest of its kind worldwide and serves millions of people across various markets, including commercial, Medicare, and Medicaid.
In Q1 2025, UnitedHealth (NYSE:UNH) reported mixed financial results and revised its full-year guidance downward. The company posted $109.6 billion in revenues, a $9.8 billion increase year-over-year. First-quarter earnings were $6.85 per share, and adjusted earnings came in at $7.20 per share. While the company grew to serve more people, with UnitedHealthcare increasing its consumer base by 780,000 year to date, CEO Andrew Witty acknowledged that UnitedHealth (NYSE:UNH) “did not perform up to our expectations.” As a result, management revised the 2025 performance outlook to net earnings of $24.65 to $25.15 per share and adjusted earnings of $26 to $26.50 per share. UnitedHealthcare adjusted its guidance due to higher-than-expected Medicare Advantage usage and changes in Optum Health members. Medicare saw increased demand for doctor and outpatient services. Additionally, Optum Health faced reimbursement challenges due to minimal 2024 beneficiary engagement by plans exiting markets.
On April 23, 2025, RBC Capital Markets adjusted its outlook on UnitedHealth (NYSE:UNH). The research firm reduced the stock’s price target to $525 from the previous $655 while maintaining an Outperform rating. The revision followed the company’s disappointing first-quarter earnings.
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).
3. JD.com, Inc.(NASDAQ:JD)
Appaloosa Management Stake Value: $362,852,233
Upside Potential as of May 5: 47.29%
Number of Hedge Fund Holders: 78
JD.com, Inc. (NASDAQ:JD) is one of China’s largest e-commerce companies and a direct competitor to Alibaba (NYSE:BABA) in the online retail market. The company operates as a supply chain-based technology and service provider. Its business model combines direct sales with a third-party marketplace. Like Alibaba (NYSE:BABA), JD.com (NASDAQ:JD) accounts for a substantial share of billionaire David Tepper’s portfolio (5.60% as of Q4 2024). The company is Tepper’s third-largest position. More than 75 other institutional investors are drawn to the company because of several factors. Key among them is the direct sales model and stringent quality control measures.
On the operational front, JD.com, Inc. (NASDAQ:JD) is actively expanding its global footprint. Reports in South Korea indicate that the company will soon enter the market. The e-commerce giant has set up logistics centers in Incheon and Icheon, Gyeonggi, and launched a service for global sellers. JD.com (NASDAQ:JD) now handles logistics for several US consumer brands, Korean beauty firms, and pet commerce companies. However, this international expansion comes amid growing geopolitical concerns. In the US, lawmakers are urging the SEC to delist Chinese companies, including JD.com (NASDAQ:JD). They cite alleged military links that they claim pose risks to US national security.
On April 28, 2025, Citi analysts adjusted their outlook on the stock. They reduced the price target to $51 from the previous $56 but maintained a Buy rating on the company’s shares. The analysts cited JD.com’s (NASDAQ:JD) push into the food delivery sector, which, they wrote, carries an air of uncertainty regarding its sustainability.
2. Caesars Entertainment, Inc. (NASDAQ:CZR)
Appaloosa Management Stake Value: $73,524,000
Upside Potential as of May 5: 51.08%
Number of Hedge Fund Holders: 79
Caesars Entertainment, Inc. (NASDAQ:CZR) is a gaming and hospitality company. It operates gaming properties under the Caesars, Harrah’s, Horseshoe, and Eldorado brand names. The company mainly serves leisure and entertainment seekers primarily in the United States through destinations such as Las Vegas, Atlantic City, and regional markets.
On April 29, 2025, Caesars Entertainment (NASDAQ:CZR) reported Q1 2025 earnings that fell short of Wall Street expectations. Normalized EPS was -$0.48 compared to -$0.44 year over year, missing consensus estimates by $0.30. Despite the earnings miss, the company’s revenue slightly exceeded expectations at $2.79 billion versus the projected $2.74 billion. Same-store adjusted EBITDA grew 4% over the prior year to $884 million, driven primarily by significant gains in its Digital segment. The company is undertaking a major property transformation. Caesars Entertainment (NASDAQ: CZR) is renovating Harveys Lake Tahoe into Caesars Republic Lake Tahoe with a $160 million transformation this summer. The 1.6 million-square-foot resort will be fully upgraded. The company also expanded its digital strategy, adding pari-mutuel horse race wagering to its Sportsbook app in Kentucky and Colorado, providing a seamless betting experience ahead of the Kentucky Derby.
On April 30, 2025, CFRA analyst Zachary Warring downgraded Caesars Entertainment (NASDAQ:CZR) stock from Buy to Hold. Warring also established a new price target of $30.00, down from the previous $39.00. The analyst noted that the “broader challenging macroeconomic environment and the company’s balance sheet issues” are the major reasons for the downgrade.
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.
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