Top 10 Growth Stocks in David Tepper’s Portfolio

3. Microsoft Corporation (NASDAQ:MSFT)

Appaloosa Management LP’s Equity Stakes: $408.86 Million

Number of Hedge Fund Holders: 317

Microsoft Corporation (NASDAQ:MSFT) is a technology company that develops and supports software, services, devices, and solutions, including operating systems, productivity applications, cloud services, and gaming platforms. It is also one of the top growth stocks in Appaloosa Management LP’s portfolio, offering exposure to some of the fastest-growing segments, including artificial intelligence.

Microsoft Corporation (NASDAQ:MSFT) affirmed its push for growth opportunities around AI with a $10 billion investment in OpenAI. Since then, it has become a leader on two fronts: cloud computing and enterprise software. As companies seek to access compute and underlying models on the cloud, its cloud computing platform, Azure, has experienced significant growth.

Azure cloud AI services grew by 157% in Q2 fiscal 2025, helping the company’s cloud computing market share increase by 31%. The demand for AI services outstripped their supply, suggesting that future growth could be even more rapid. Amid the robust growth, Microsoft Corporation (NASDAQ:MSFT) is investing close to $80 billion in data centers that can manage growing workloads related to artificial intelligence (AI) and in search of new growth prospects. Revenue and net income continued to increase in the first half of fiscal 2025. Net income rose 10.4% to $48.8 billion, while sales surged 14.1% to $135.2 billion.