Alphabet Inc. (NASDAQ:GOOG) Number 6 on billionaire David Tepper's list of the 10 best AI stocks to buy in 2024.
Click to see Billionaire David Tepper picks the 10 best AI stocks to buy in 2024.
Billionaire David Tepper of Appaloosa Management has been in the spotlight recently after it was revealed that the 66-year-old owner of the Carolina Panthers is investing in Chinese stocks in his latest portfolio while apparently reducing his exposure to mega-cap tech stocks whose AI-driven rally has already made him big money over the past few quarters. Tepper's bet on China comes at a time when the Chinese government is beginning to formulate further rescue measures for its devastated real estate sector and many analysts are predicting a recovery in the Chinese economy. The MSCI China Index has risen about 10% since the end of March.
David Tepper, who founded Appaloosa Management in 1993, made a 20% return last year with his huge investments in AI-related stocks. A quick analysis of David Tepper, who has a net worth of more than $20 billion, shows that he concentrated his investments in AI-related stocks when they were just starting out. This was not a fluke or a one-off success for the billionaire. According to Bloomberg data, Tepper has given investors an annualized return of 28% before fees. In 2022, when the market crashed due to a storm of inflation and rising interest rates, Appaloosa returned 12.5%. Tepper's intuition and command of financial markets have been strong since his late 20s and 30s, when he made huge profits at Goldman Sachs, which he joined in 1985.
Tepper rose to fame at Goldman for his portfolio's prominence during the 1987 market collapse. Alpha Masters: Unleashing the genius of the world's top hedge fundsIn the book “The Great Gatsby,” written by Maneet Ahuja, Tepper recalls:
“Before the crash, I had my entire portfolio set up for short positions, no long positions. I made a ton of money during and after the crash,” he says with a laugh. “It was pretty cool.” Unfortunately, others at the firm didn't fare so well. “I still got a raise, but it wasn't as big as I'd hoped.”
Alphabet Inc. (NASDAQ:GOOG)
Billionaire David Tepper's stock value Q1 2024: $315,939,500
David Tepper first purchased shares of Alphabet Inc. (NASDAQ:GOOG) in Q3 2024 and has been gradually increasing his holdings over the years. However, the billionaire began to significantly reduce his holdings in Alphabet Inc. (NASDAQ:GOOG) in 2021. In the first quarter, Appaloosa reduced its holdings in Alphabet Inc. (NASDAQ:GOOG) by 10%. The fund still holds $316 million in Alphabet Inc. (NASDAQ:GOOG) stock.
Bloomberg recently reported that Alphabet Inc. (NASDAQ:GOOG) and Meta Platforms are in talks with major Hollywood studios to license content for use in their AI video generation software.
Alphabet Inc. (NASDAQ:GOOG) is one of the most popular AI stocks among the 900+ hedge funds tracked by Insider Monkey. As of the end of the first quarter of 2024, 222 hedge funds reported holding shares of the search engine giant, up from 214 funds the previous quarter, according to Insider Monkey's proprietary database of hedge funds.
In its Q1 2024 investor letter, Bronte Capital Amalthea Fund said the following about Alphabet Inc. (NASDAQ:GOOG):
“Our greatest position is Alphabet Inc. (NASDAQ:GOOG), the holding company for Google, currently accounts for about 12% of assets under management, a large position it has held for over a decade.
We bought a lot of Google stock in October 2010, and the stock price quickly fell 11 percent.
It was an amazingly good buy. If I had held it from October 2010 through the end of this month, I would have made about 1,300 percent.
Unfortunately, we did not have it all. We have cut it down many times and now it is simply a large position. (We have lived with regret after each cut…)”Click here to read the full article)
Alphabet Inc. (NASDAQ:GOOG) ranks sixth on our list. Billionaire David Tepper picks the 10 best AI stocks to buy in 2024.
If you're looking for AI stocks with as much promise as Microsoft, but whose shares trade at less than five times earnings, check out our report on the cheapest AI stocks.
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Disclosures: None. This article was originally published on Insider Monkey.
