Alphabet Inc. (NASDAQ:GOOG) ranks 6th on our list of 10 Best AI Stocks to Buy for 2024 According to Billionaire David Tepper.
Click to see 10 Best AI Stocks to Buy for 2024 According to Billionaire David Tepper.
Billionaire David Tepper of Appaloosa Management recently made headlines when his latest portfolio showed the 66-year-old owner of Carolina Panthers was piling into Chinese stocks while clearly cutting his exposure to mega-cap tech stocks which have already rewarded him heftily over the past several quarters, thanks to the AI-led rally. Tepper’s bet on Chinese stocks comes at a time when many analysts are predicting a rebound of Chinese economy as the government begins to devise more rescue plans for the devastated property sector. The MSCI China index is up about 10% since the end of March.
David Tepper, who founded Appaloosa Management back in 1993, returned 20% last year, thanks to his huge stake in AI stocks. A cursory analysis of David Tepper, worth over $20 billion, shows that he was piling into AI stocks when they were just getting started. This wasn’t a fluke or a one-off success from the billionaire. Data from Bloomberg shows that Tepper has posted annualized returns of 28% for investors, before fees. In 2022, when markets were tumbling amid inflation storm and rising interest rates, Appaloosa returned 12.5%. Tepper’s instincts and grip over financial markets were strong even when he was in his late 20s and 30s, raking in huge profits for Goldman Sachs, which he’d joined in 1985.
Tepper rose to fame at Goldman when his portfolio stood out in the mist of the market crash of 1987. According to The Alpha Masters: Unlocking the Genius of the World’s Top Hedge Funds, written by Maneet Ahuja, Tepper recalled:
“Going into the crash I had set up my entire portfolio as just short—I had no long positions. I made a fortune during and after the crash,” he says with a chuckle. “It was very cool.” Unfortunately, the rest of the firm didn’t do as well. “I still got a raise but not as much as I should have.”
Alphabet Inc. (NASDAQ:GOOG)
Billionaire David Tepper Q1’2024 Stake Value: $315,939,500
David Tepper first bought a stake in Alphabet Inc. (NASDAQ:GOOG) in the third quarter of 2024, gradually adding to his position over the years. However, the billionaire started decreasing his hold in Alphabet Inc. (NASDAQ:GOOG) significantly in 2021. In the first quarter, Appaloosa decreased its position in Alphabet Inc. (NASDAQ:GOOG) by 10%. The fund still owns a $316 million stake in Alphabet Inc. (NASDAQ:GOOG).
Bloomberg recently reported Alphabet Inc. (NASDAQ:GOOG) and Meta Platforms are in talks with major Hollywood studios to license content for use in AI video generation software.
Alphabet Inc. (NASDAQ:GOOG) is also one of the most popular AI stocks among the over 900 hedge funds tracked by Insider Monkey. As of the end of the first quarter of 2024, Insider Monkey’s proprietary database of hedge funds shows that 222 hedge funds reported owning stakes in the search engine giant, up from 214 funds in the previous quarter.
Bronte Capital Amalthea Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its first quarter 2024 investor letter:
“Our biggest position is Alphabet Inc. (NASDAQ:GOOG), the holding company for Google. It is currently about 12 percent of funds under management. This has been a large position for over ten years.
We bought a large position in Google in October 20104, and the stock immediately dropped 11 percent.
That was an astonishingly good purchase and if we had held it all from October 2010 until the end of this month the gain would have been about 1300 percent.
Alas we did not hold it all. We have trimmed it many times – and it is now merely a large position. (We have lived to regret every single trim…)..” (Click here to read the full text)
Alphabet Inc. (NASDAQ:GOOG) ranks 6th on our list of 10 Best AI Stocks to Buy for 2024 According to Billionaire David Tepper.
If you are looking for an AI stock that is as promising as Microsoft but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.