In this article, we will take a look at the Top 10 Long-Term Stocks to Invest In According to David Tepper.
David Tepper founded hedge fund Appaloosa Management in 1993 and has a personal fortune worth $23.7 billion. Tepper’s two main investing principles are to seek out value and not worry about the common wisdom. Market sentiment plays zero role in his investment strategy as he focuses on undervalued stocks that offer sound fundamentals and growth prospects.
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Considering the current market situation, Tepper mentioned that he’s feeling constructive but pretty lousy about a good year for the U.S. stock market. On September 18, the veteran investor appeared on CNBC’s Squawk Box, a day after the Fed cut rates for the first time in nine months. “I am not fighting the Fed,” Tepper mentioned, adding “at least not in the near term.”
Pointing out to the economy that’s been holding up, he expects the Fed to cut rates twice more this year. Beyond that, it would be tricky to make rate cuts, considering the stocks that are already ‘not at cheap levels,’ he added. Moreover, Tepper has been following 10-year Treasury yields and 30-year mortgage rates as he believes that housing-related assets could see a further boost if rates fall. This could happen if the Trump administration convinces the Fed to adjust its policy concerning its agency mortgage-backed securities.
Moreover, Tepper sees Trump’s 25% to 50% tariff rates as a bit destructive for the economy. Appaloosa’s founder has exposure to energy stocks, Nvidia, and other AI players, as well as China. For his investments, Tepper said that he is having a really good year. Tepper sees potential in the market and cited that you have to stay for some of this party, because the punchbowl is still there.
With these trends in view, let’s take a look at the Top 10 Long-Term Stocks to Invest In According to David Tepper.
David Tepper
Our Methodology
To compile the top 10 long-term stocks to invest in according to David Tepper, we analyzed Appaloosa Management’s Q2 2025 13F portfolio. From the full list of holdings, we focused on companies that have been part of Appaloosa’s portfolio for at least five consecutive years. We have also mentioned hedge fund sentiment around these stocks using Insider Monkey’s database of Q2 2025. Finally, the stocks are ranked in ascending order based on the percentage of Appaloosa Management’s stake in each company.
Note: The data was collected on September 30.
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).
David Tepper Stock Portfolio: Top 10 Long-Term Stock Picks
10. MPLX LP (NYSE:MPLX)
Percentage of Portfolio Holding: 0.46%
Portfolio Holding Value: $29.80 Million
Number of Hedge Fund Holders: 13
MPLX LP (NYSE:MPLX) is one of the top 10 long-term stocks to invest in according to David Tepper. MPLX LP (NYSE:MPLX) is scheduled to release its Q3 2025 results on November 4, 2025.
Wall Street expects MPLX to post an average earnings per share of $1.10, while the revenue is estimated to be around $3.16 billion. During Q2, the company posted $1.03 in adjusted earnings and revenue of $3 billion, both figures missing consensus estimates.
On September 23, Wells Fargo analyst Michael Blum slightly lowered the price target on MPLX from $60 to $59, keeping its Overweight rating on the stock. Blum remains a little cautious regarding MPLX after the company announced the sale of its Rockies gathering and processing assets. The analyst expects that this will have an impact on the company’s future EBITDA. Blum has also updated its 2025/2025 EBITDA estimates, resulting in a slightly lower EBITDA forecast.
As of September 30, MPLX LP’s (NYSE:MPLX) average price target of $57, based on analysts’ estimates, implies an upside of approximately 14.11% from current levels.
MPLX LP (NYSE:MPLX) owns and operates midstream energy infrastructure and logistics assets mainly in the U.S. MPLX operates through two segments: Crude Oil and Products Logistics, and Natural Gas and NGL Services.
9. Energy Transfer LP (NYSE:ET)
Percentage of Portfolio Holding: 1.39%
Portfolio Holding Value: $89.87 Million
Number of Hedge Fund Holders: 36
Energy Transfer LP (NYSE:ET) is one of the top 10 long-term stocks to invest in according to David Tepper. On October 1, Wells Fargo reiterated its Buy rating on Energy Transfer LP (NYSE:ET), keeping the price target at $23.
Michael Blum from Wells Fargo kept the Buy rating on ET as the analyst added the firm’s Q4 2025 Tactical Ideas List. Blum sees several potential catalysts for Energy Transfer heading into the fourth quarter. The analyst believes that projects such as FID of Lake Charles could be a positive development for the company, while Desert SW pipeline could be expanded to 3 Bcf/d, adding further to Energy Transfer’s growth in the sector.
Blum also mentioned that Energy Transfer could announce a gas pipeline project linked to the Fermi America IPO, which could be a plus for the company.
As of September 30, Energy Transfer LP’s (NYSE:ET) average price target of $23, based on analysts’ estimates, implies an upside of almost 34.03% from current levels.
Energy Transfer LP (NYSE:ET), along with its subsidiaries, provides energy-related services in the U.S.
8. Micron Technology, Inc. (NASDAQ:MU)
Percentage of Portfolio Holding: 1.58%
Portfolio Holding Value: $101.68 Million
Number of Hedge Fund Holders: 94
Micron Technology, Inc. (NASDAQ:MU) is one of the top 10 long-term stocks to invest in according to David Tepper. On September 25, Citi raised the price target on Micron Technology, Inc. (NASDAQ:MU) from $175 to $200, keeping its Buy rating on the stock.
Christopher Danely from Citi raised the price target on Micron Technology following strong Q4 FY2025 results. The company posted a revenue of $11.32 billion during Q4, beating consensus by $159.82 million. The adjusted earnings per share came in at $3.03, up against the estimated $2.86. For the full year 2025, Micron achieved a record revenue of $37.4 billion, representing almost a 50% increase from a year ago.
Danely remains bullish on Micron, citing robust demand for the company’s data center end market, and expects the DRAM market to tighten more in 2026. Micron’s data center business contributed a record 56% of the total company’s revenue in 2025, with gross margins reaching 52%. Moreover, the company’s HBM revenue soared to $2 billion in Q4, indicating an annualized run rate of approximately $8 billion.
As of September 30, Micron Technology, Inc.’s (NASDAQ:MU) average price target of $195, based on analysts’ estimates, implies an upside of nearly 16.54% from current levels.
Micron Technology, Inc. (NASDAQ:MU) is a leading chipmaker that designs and develops memory and storage products. The company operates through four segments: Computer and Networking Business Unit, Mobile Business Unit, Embedded Business Unit, and Storage Business Unit.
7. Microsoft Corporation (NASDAQ:MSFT)
Percentage of Portfolio Holding: 3.86%
Portfolio Holding Value: $248.70 Million
Number of Hedge Fund Holders: 294
Microsoft Corporation (NASDAQ:MSFT) is one of the top 10 long-term stocks to invest in according to David Tepper. On September 23, Microsoft Corporation (NASDAQ:MSFT) announced the availability of Ryght AI’s cutting-edge clinical research platform in its Azure Marketplace.
Microsoft Azure Marketplace serves as an online store offering applications and services for use on Azure. Customers can make productive use of the trusted Azure cloud platform, which enables streamlined deployment and management. Ryght’s availability on Microsoft Azure allows healthcare organizations to leverage their existing Azure cloud commitment while continuing their clinical trial processes through generative and agentic AI. Jake Zborowski, General Manager, Microsoft Azure Platform at Microsoft, made the following statement:
“Microsoft Azure Marketplace welcomes Ryght, which joins a cloud marketplace landscape offering flexibility and economic value while transacting tens of billions of dollars a year in revenues. Thanks to Azure Marketplace and partners like Ryght, customers can do more with less by increasing efficiency, buying confidently, and spending smarter.”
Healthcare organizations can use Azure’s billing and account management systems. This enables customers to manage their Ryght subscription alongside other Azure services, offering a collective view of cloud service utilization and costs. Through these services, Microsoft Azure Marketplace simplifies the process for organizations.
Microsoft Corporation (NASDAQ:MSFT) is a technology giant that develops and supports software, services, devices, and solutions. The company operates through: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing.
6. Uber Technologies, Inc. (NYSE:UBER)
Percentage of Portfolio Holding: 3.98%
Portfolio Holding Value: $256.57 Million
Number of Hedge Fund Holders: 152
Uber Technologies, Inc. (NYSE:UBER) is one of the top 10 long-term stocks to invest in according to David Tepper. On September 30, Mizuho Securities raised the price target on Uber Technologies, Inc. (NYSE:UBER) from $98.45 to $130, keeping its Outperform rating on the stock.
Uber continues to expand its delivery network beyond cards, bikes, couriers, and sidewalk robots by introducing drones. Wei Fang from Mizuho believes in the growing network of Uber and sees upside as the analyst forecasts the company to become a ‘multi-year compounder’ with a 2025-2028 CAGR of 15% for revenue, 16% for gross profit, and 25% for EPS.
On September 18, Uber announced its partnership with Flytrex to launch drone delivery on the Uber Eats platform. The service will be launched in select U.S. pilot markets by the end of 2025. This is Uber’s first investment in drone delivery technology. The drone delivery service is expected to reduce delivery times to some minutes and cut emissions from traditional methods.
Bernstein also rates Uber Technologies, Inc. (NYSE:UBER) as a Buy, maintaining the price target at $110. Bernstein analyst Nikhil Devnani believes that Uber’s investments in product development, regional expansion, and affordability initiatives should benefit the company in the coming years.
Uber Technologies, Inc. (NYSE:UBER) develops and operates proprietary technology applications. The company operates through three segments, including Mobility, Delivery, and Freight.
5. Alphabet Inc. (NASDAQ:GOOGL)
Percentage of Portfolio Holding: 4.13%
Portfolio Holding Value: $266.08 Million
Number of Hedge Fund Holders: 219
Alphabet Inc. (NASDAQ:GOOGL) is one of the top 10 long-term stocks to invest in according to David Tepper. On September 22, Alphabet Inc. (NASDAQ:GOOGL) introduced its Generative AI tool for Google TV.
Gemini is now available on Google TV, allowing users to engage in free-flowing, natural language conversations with the AI. Following the complete access of Gemini on the TV, it will bring Google’s AI to over 300 million active Google TV and other Android TV OS-powered devices.
“Everything you already do with Google Assistant still works, but Gemini on Google TV goes beyond simple commands and lets you engage in free-flowing conversations with your big screen. Just say “Hey Google” or press the microphone button on your TV remote to unlock a new world of possibilities,” the company said.
Gemini will support users in providing helpful answers regarding YouTube videos, allowing users to access deep insights on their TV. Gemini is available on the TCL QM9K series starting September 22, 2025. Later this year, the AI assistant will be available on more devices, including the Google TV Streamer, Onn 4K Pro, 2025 Hisense U7, U8, and UX models, and 2025 TCL QM7K, QM8K, and X11K models.
Alphabet Inc. (NASDAQ:GOOGL) is a diversified company that offers different products and platforms globally. The company operates through Google Services, Google Cloud, and Other Bets segments.
4. Meta Platforms, Inc. (NASDAQ:META)
Percentage of Portfolio Holding: 4.58%
Portfolio Holding Value: $295.24 Million
Number of Hedge Fund Holders: 260
Meta Platforms, Inc. (NASDAQ:META) is one of the top 10 long-term stocks to invest in according to David Tepper. On September 24, Citi reiterated the Buy rating on Meta Platforms, Inc. (NASDAQ:META), keeping the price target at $915.
Ronald Josey from Citi remains positive on Meta as the company raises the stakes in Big Tech’s fight against AI regulation. Meta is investing millions into a new super PAC to overcome state-level policy proposals that could restrain AI development, as per Axios. Meta’s pro-AI PAC is the company’s latest effort to fight off gruelling AI and tech policy bills across the country.
The company’s latest super PAC is called the American Technology Excellence Project. Meta’s spokesperson Rachel Holland mentioned that the company is investing ‘tens of millions’ into the project.
On top of this, Citi sees Meta’s latest AI glasses as a major catalyst for the company. The analyst believes that adoption of AI glasses could reach a ‘tipping point’ in 2026 as the device capabilities increase.
As of September 30, Meta Platforms, Inc.’s (NASDAQ:META) average price target of $880, based on analysts’ estimates, implies an upside of almost 19.83% from current levels.
Meta Platforms, Inc. (NASDAQ:META) is a leading technology company that engages in the development of products that offer connectivity among people. The company offers connectivity services through its social media platforms and its VR, mixed reality headsets, and wearable products.
3. Amazon.com, Inc. (NASDAQ:AMZN)
Percentage of Portfolio Holding: 9.19%
Portfolio Holding Value: $592.35 Million
Number of Hedge Fund Holders: 335
Amazon.com, Inc. (NASDAQ:AMZN) is one of the top 10 long-term stocks to invest in according to David Tepper. On September 29, Mizuho Securities reiterated the Buy rating on Amazon.com, Inc. (NASDAQ:AMZN), keeping the price target at $300.
Lloyd Walmsley from Mizuho remains bullish on AMZN as he sees potential in Amazon’s cloud business. AWS is expected to benefit from both added capacity and rising inference demand in 2026.
“We see AWS revenue growth accelerating as more capacity comes online, particularly the Project Rainier EC2 UltraCluster, and Anthropic sees rapid growth in its business,” Walmsley added.
The analyst believes that Amazon Cloud Service’s ecosystem gives it a solid foundation to keep accelerating at pace in the GenAI era. Moreover, the improving supply along with cost efficiency from ASICs should help revenue growth in the second half of 2025 and 2026, as per the analyst.
On September 24, Wells Fargo also upgraded Amazon.com, Inc. (NASDAQ:AMZN) from Equal Weight to Overweight, raising the price target from $245 to $280. Ken Gawrelski from Wells Fargo sees Amazon’s cloud market and Anthropic’s contribution analysis. Gawrelski believes that AWS will see revenue acceleration, expecting sales growth of 22% in 2026. This indicates four points above consensus, with its share losses peaking in 2025.
Amazon.com, Inc. (NASDAQ:AMZN) offers a range of products and services to customers. The company engages in retail sales of consumer products, advertising, and subscription services through online and physical stores.
2. UnitedHealth Group Incorporated (NYSE:UNH)
Percentage of Portfolio Holding: 11.85%
Portfolio Holding Value: $764.33 Million
Number of Hedge Fund Holders: 159
UnitedHealth Group Incorporated (NYSE:UNH) is one of the top 10 long-term stocks to invest in according to David Tepper. On September 26, Bernstein reaffirmed its Buy rating to UnitedHealth Group Incorporated (NYSE:UNH), keeping the price target at $379.
Lance Wilkes from Bernstein kept a Buy rating on UNH as the company remains a strong pick amid a sector recovery. Wilkes sees strong short-term potential in UnitedHealth, considering the stability and earnings upside. The analyst remains positive on the relative strength of diversified managed care organizations (MCO) and believes that UNH has solid long-term value at current levels with strong earnings growth potential.
Similarly, UBS maintains its $378 price target and a Buy rating on UnitedHealth Group Incorporated (NYSE:UNH) as of September 19. UnitedHealth mispriced its business and experienced an abrupt management change, leading to a surprise decline during the last two quarters. UBS analyst A.J. Rice remains optimistic following the company’s reaffirmation of 2025 guidance. The analyst did acknowledge the risks from v28 Medicare Advantage changes in 2026, but pointed to management’s margin-strengthening efforts to be a major catalyst for continued growth.
As of September 30, UnitedHealth Group Incorporated’s (NYSE:UNH) average price target of $325, based on analysts’ estimates, implies a downside of almost 5.88% from current levels.
UnitedHealth Group Incorporated (NYSE:UNH) is one of the leading healthcare companies in the U.S. The company operates through four segments: UnitedHealthcare, Optum Health, Optum Insight, and Optum Rx.
1. Alibaba Group Holding Limited (NYSE:BABA)
Percentage of Portfolio Holding: 12.43%
Portfolio Holding Value: $801.50 Million
Number of Hedge Fund Holders: 101
Alibaba Group Holding Limited (NYSE:BABA) is one of the top 10 long-term stocks to invest in according to David Tepper. On September 22, Bloomberg reported that Alibaba Group Holding Limited (NYSE:BABA) is trying to attract established players on Amazon.com to its global e-commerce platform AliExpress.
Alibaba is focusing on expanding its footprint on Amazon’s home turf. AliExpress is trying to add more leading brands to its platform by offering lower shipping fees and taking lower cuts of sales compared to Amazon. According to Bloomberg, AliExpress is planning a new initiative to attract more customers and boost sales in major markets, including Europe and Latin America. Alibaba will also try to get hold of brands present on its domestic e-commerce platform T-Mall. The amount of investment being spent on this initiative is undisclosed.
AliExpress already hosts some of the leading brands from China, including Xiaomi and Labubu-branded plush toy maker Pop Market International Group. Although Alibaba mentioned earlier this year that its core focus will remain on developing AI now, e-commerce remains its main source of income.
On September 29, Citi analyst Alicia Yap raised the price target on BABA following its annual event, the Apsara Conference. Yap sees higher cloud revenue and capex assumptions driven by Alibaba’s goal to increase its data center capacity due to rising AI demand. The analyst says that Alibaba is one of the “5-6 global super cloud platforms with full-stack AI services.”
Alibaba Group Holding Limited (NYSE:BABA) offers technology infrastructure and market platforms. The company operates through seven segments, including China Commerce, International Commerce, Local Consumer Services, Cloud, Cainiao, Digital Media and Entertainment, and Innovation Initiatives and Others.
While we acknowledge the potential of BABA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BABA and that has 100x upside potential, check out our report about this cheapest AI stock.
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