Are you ready to dive into the thrilling world of AI investments with one of the world’s top billionaires? David Tepper, the financial titan behind Appaloosa Management, has been making some bold moves in the AI sector. While Nvidia has seen a significant purchase from Tepper, it’s not his largest AI investment. That title goes to none other than Chinese powerhouse Alibaba Group Holding.
Work revolution: Google reveals 90% of professionals are already using AI daily – are you one of them?
Gigantic 400-meter structures discovered beneath Antarctic ice spark heated debate among scientists worldwide
The AI Investment Landscape According to Tepper
In the competitive realm of AI technology, certain stocks have captured David Tepper’s attention, aligning with his investment strategies. Notably, Tepper’s portfolio is heavily weighted towards AI, with seven out of his top ten investments in this sector. Alibaba isn’t just another name on this list—it’s at the pinnacle, making up a substantial 12.4% of his total holdings, valued at a hefty $801.5 million as of mid-2025.
Other key players in Tepper’s AI-focused portfolio include Amazon, Alphabet, and Microsoft, all giants in cloud computing and AI technologies. While Meta Platforms and Uber Technologies might not be hyperscalers, they are integral parts of the AI revolution in their respective domains. Additionally, companies like Vistra and NRG Energy play crucial roles by powering the data centers essential for AI operations.
Why Alibaba Stands Out to Tepper
Tepper’s fascination with Alibaba isn’t unfounded. His enthusiasm was further fueled by China’s massive economic stimulus announced in 2024, which prompted him to express interest in buying “everything” China-related due to attractive valuations and growth prospects. Alibaba, with its then appealing valuation and solid growth trajectory, seemed a perfect fit.
Despite Alibaba’s stock price more than doubling in 2025 and its valuation becoming less attractive (with a forward P/E ratio of 23.3), the company has shown promising signs. Its AI-related product revenue has seen explosive growth for eight consecutive quarters, and its Cloud Intelligence Group’s revenue surged by 26% year-over-year in the latest quarter. This growth is critical as China aims to become a global AI leader by 2030.
Reevaluating Alibaba’s Current Investment Appeal
Interestingly, despite his strong position, Tepper reduced his Alibaba stake by about 23% in the second quarter of 2025, selling over 2 million shares. This move likely stemmed from a desire to secure profits, especially since Alibaba’s stock continued to appreciate post-sale. This decision might suggest that while Alibaba was a lucrative bet, the current valuation and potential government interventions could add volatility to the investment.
Though no longer the bargain it once was, Alibaba remains a solid choice for long-term investors looking to capitalize on China’s aggressive push into AI technology. Tepper’s actions reflect a strategic trimming rather than a full-scale retreat, indicating Alibaba still holds considerable value in the eyes of one of the world’s most astute investors.
Similar Posts
- Top 2025 Picks: 3 Growth Stocks You Must Buy in the Second Half!
- Dump SoundHound AI: Here Are 2 AI Stocks You Should Buy Immediately!
- Unlock Warren Buffett’s Top Stock Picks: Invest $1,000 Wisely Today!
- Billionaire Philippe Laffont Trades Nvidia for Soaring AI Stock: Up 300% in 2025!
- Top Stocks to Buy with Just $1,000: Invest Smartly Today!
Glen Rodrick is a business journalist specializing in companies, financial markets, and consumer trends. He offers practical insights to help readers stay informed on economic shifts.
