Billionaire David Tepper’s Top 12 Stock Picks Heading into 2026

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10. Microsoft Corporation (NASDAQ:MSFT)

Stock Performance (end Q3-December 11): -6.66%

Appaloosa Management Equity Stake: $239.55 Million

Number of Hedge Fund Holders: 312

Microsoft Corporation (NASDAQ:MSFT) is one of billionaire David Tepper’s top stock picks heading into 2026. On December 11, the company inked a strategic partnership with Cognizant, Infosys, TCS, and Wipro. The leading IT companies are joining forces with the software giant to accelerate the development and adoption of agentic AI.

As part of the agreement, the companies are to deploy 50,000 Microsoft Copilot licenses, setting a new benchmark for enterprise AI adoption. The deployment comes when Microsoft plans to invest $17.5 billion in cloud and artificial intelligence infrastructure and skills in India. Additionally, Microsoft is to deploy Microsoft 365 Copilot as it seeks to transform the way organizations operate, innovate, and scale in the country.

“Cognizant, Infosys, TCS, and Wipro aren’t just embracing AI—they’re setting the global pace. These global enterprises are moving beyond experimentation to full-scale deployment, embedding Microsoft Copilot into the fabric of everyday work. This bold adoption is inspiring a new era of enterprise transformation, powered by trusted digital collaborators. The blueprint is being written here—where speed, scale, and impact converge to redefine what’s possible,” said Puneet Chandok, President, Microsoft India & South Asia.

In addition, Microsoft and Cognizant have expanded their partnership to ensure Microsoft’s generative AI capabilities are available to millions of people and transform enterprise business operations.

Earlier on December 8, Morgan Stanley analyst Keith Weiss reaffirmed a Buy rating on Microsoft with a $650 price target. He cited strong growth drivers, including upcoming Microsoft 365 price hikes in July 2026, new AI and security features, and rising demand for premium subscriptions like Copilot and E5. These moves are expected to lift revenue by $2–$6 billion between FY27 and FY29, showcasing Microsoft’s pricing power and long-term growth potential.

Microsoft Corporation (NASDAQ:MSFT) is a technology giant that develops and sells software, cloud services, devices, and video games. It’s also known for Azure cloud, Xbox, and Surface hardware, leveraging AI to empower individuals and organizations globally across productivity, cloud computing, and personal computing.

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