In this article we present the list of Top 10 Growth Stocks in David Tepper’s Portfolio.
Buy “everything” related to China has been David Tepper’s investment theme despite the uncertainties about the economy amid a trade spat with the US. The president and founder of Appaloosa Management LP believes China’s economy is well-positioned to bounce back from the COVID-19-triggered slowdown.
“Everything. ETFs, I would do futures — everything. Everything,” Tepper said during an interview on CNBC when asked about which Chinese equities.
Consequently, Appaloosa Management LP’s portfolio has built significant exposure to Chinese equities, with the biggest holding offering exposure to the country’s internet landscape. The investment strategy is increasingly paying off as Chinese stocks have enjoyed a bull run in response to Beijing unveiling a sweep of measures aimed at boosting economic growth.
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With 5.4% growth in the fourth quarter of 2024, China’s economy exceeded expectations thanks to Beijing’s stimulus policies, which included interest rate reductions. Investors are awaiting information on further fiscal assistance for the struggling real estate sector and consumer demand.
Increased focus on Chinese equities affirms Tepper’s philosophy, which often revolves around contrarian views on the market. His focus on Chinese equities comes amid growing concerns that they would be hit hard as the US imposes significant trade tariffs on China in a bid to trim the trade deficit between the two economic powerhouses.
Amid the concerns, the founder of Appaloosa Management LP insists on the need to deploy significant risk management to offset the impacts of the ongoing trade war. Similarly, Tepper has already emphasized the need to stay invested in bull markets, which appear and remain calm during market downturns, as the one in play in the US.
US equities have been under immense pressure in the first quarter of 2025, which is attributed to uncertainties about US trade wars and the reluctance of the US Federal Reserve to cut interest rates. The S&P 500 has already shed nearly 3% in value and is on course to record its first quarterly decline since July of 2023.
The selloff in the US equity markets also comes at the backdrop of disappointing financial results from some companies that have been reported. Market participants have also not been impressed by the guidance that signals potential weakness across the board amid deteriorating macroeconomics.
“You know there’s this negative bias out there. You just don’t know to what degree,” said Michael O’Rourke, chief market strategist at JonesTrading in Stamford, Connecticut.
Analysts are becoming increasingly wary regarding US corporate profits for the first quarter of this year, as policies from the Trump administration pose a risk of igniting a global trade conflict that could hinder economic expansion. Predictions for the S&P 500’s performance in the first quarter of 2025 have decreased by 4.5 percentage points, marking the most significant downward adjustment since the last quarter of 2023, according to his remarks.
Earnings growth for S&P 500 firms is now projected to be 7.7% compared to the previous year, which would represent the lowest rate since the third quarter of 2023 and a substantial drop from 17.1% in the final quarter of 2024, according to data from LSEG released on Friday.
“A lot of people are worried about things like tariffs … Really, it’s a broad economic slowdown that is the one thing that would be very difficult for companies to contend with,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute.
Our Methodology
We combed Appaloosa Management LP’s SEC Q4 2024 13F filings to identify the top 10 growth stocks in Appaloosa Management LP’s portfolio. From the resultant data, we settled on the top 10 picks and analyzed them on why they stand out as growth picks. Finally, we ranked the stocks in ascending order based on the value of Appaloosa Management LP’s equity stakes while also detailing hedge fund sentiment around the stocks, as of Q4 2024.
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).
Top 10 Growth Stocks in David Tepper’s Portfolio
10. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Appaloosa Management LP’s Equity Stakes: $49.37 Million
Number of Hedge Fund Holders: 186
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is the world’s largest chip manufacturer, controlling about 60% of the market share in the multibillion-dollar sector. The company produces chips for chip giants, including Nvidia, AMD, and Apple. Likewise, it is one of the top growth stocks in Appaloosa Management LP’s portfolio, benefiting from the growth of artificial intelligence, the Internet of Things and high-performance computing applications.
Taiwan Semiconductor Manufacturing Company Limited’s (NYSE:TSM) 90% market share in the production of sophisticated processors underscores its solid top-and bottom-line growth. In the fourth quarter, which concluded on December 31, revenue climbed 37% year-over-year to $26.8 billion, while EPS soared 57% to $2.24 per share.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) estimates AI sales will triple in 2025 as demand for AI chips remains strong. Tech behemoths like Meta Platforms, Microsoft, and others have already announced hundreds of billions of dollars in data center spending, so Taiwan Semiconductor’s growth prospects remain strong. The company expects its revenue to grow at a compound annual growth rate of 20% between 2024 and 2029. It also expects its growth margin to improve to 53%.
9. Uber Technologies, Inc. (NYSE:UBER)
Appaloosa Management LP’s Equity Stakes: $90.48 Million
Number of Hedge Fund Holders: 166
Uber Technologies, Inc. (NYSE:UBER) is a technology company that offers transportation and ride-sharing technology that allows passengers to book rides and drivers to charge fares and get paid via a smartphone app. While the stock has rallied by more than 1580% since 2022, the rally has come on the company delivering solid financial results that affirm underlying growth.
The ride-sharing giant delivered an 18% year-over-year increase in gross bookings to $44.2 billion as it completed 3.1 billion trips, and revenue grew by 20% to $12 billion in Q4 2024. Mobility and Delivery revenue combined increased by 23% year-over-year. Over the past five years, Uber Technologies, Inc. (NYSE:UBER) has grown its revenues at a compound annual growth rate of 28% as it benefits from strong growth in the mobility and delivery segments.
The robust revenue growth has also come on monthly active platform users, growing 14% year-over-year to 171 million. There are 30 million Uber One members, a 60% increase from the previous year. In addition to collaborating with Delta Air Lines as its exclusive ride-share and delivery partner in the United States, it’s begun operating a fleet of autonomous vehicles for food delivery in Texas, strengthening its growth prospects.
8. NVIDIA Corporation (NASDAQ:NVDA)
Appaloosa Management LP’s Equity Stakes: $91.32 Million
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) is a technology giant that designs and supplies the much sought-after graphics processing units (GPUs) for artificial intelligence workloads. It is one of the top growth stocks in Appaloosa Management LP as it increasingly capitalizes on growth opportunities around gaming personal computers, cryptocurrency mining, and high-performance computing.
NVIDIA Corporation’s (NASDAQ:NVDA) revenue has more than doubled in the past two years amid strong demand for robust, advanced chips for artificial intelligence workloads. Likewise, analysts expect the growth momentum to continue in 2025, with revenues expected to increase by more than 50%.
On the other hand, management projects revenue growth of 65% as they ramp up the supply of the latest generation Blackwell processors. Earnings, meanwhile, are expected to increase by 50% despite the near-term margin pressure due to the ramping of Blackwell processors. With revenues growing at a compound annual growth rate (CAGR) of 69% over the previous three years, NVIDIA Corporation (NASDAQ:NVDA) has affirmed why it is one of the top growth stocks. As AI infrastructure spending grows, the company’s revenue base should receive a significant boost.
7. Qualcomm Inc (NASDAQ:QCOM)
Appaloosa Management LP’s Equity Stakes: $122.90 Million
Number of Hedge Fund Holders: 79
Qualcomm Inc (NASDAQ:QCOM) is a semiconductor giant known for developing and licensing chipsets, processors, modems, and RF systems for mobile devices, automotive, computing, and IoT. It is one of the top growth stocks in Appaloosa Management LP’s portfolio as a leader in smartphone chipsets.
Qualcomm Inc (NASDAQ:QCOM) has sought to strengthen its growth metrics by releasing its AI-enabled Snapdragon 3 Gen 8 mobile processor. Revenue growing by double-digit levels in the last three quarters underscores the robust underlying growth. Revenue for its fiscal Q1 ended December 29 increased 17% to $11.67 billion. Its semiconductor sector (QCT) saw a 20% increase in revenue to $10.1 billion. Vehicle revenue jumped 61% to $961 million as revenue from the Internet of Things (IoT) increased 36% to $1.5 billion.
Qualcomm Inc (NASDAQ:QCOM) attributed its substantial handset revenue to increased sales of high-end Android smartphones, like the Samsung Galaxy S25 models running on its Snapdragon 8 Elite platform. Additionally, it stated that its sales to Chinese clients remain strong due to the country’s growing premium market.
6. Advanced Micro Devices Inc. (NASDAQ:AMD)
Appaloosa Management LP’s Equity Stakes: $144.95 Million
Number of Hedge Fund Holders: 96
Advanced Micro Devices Inc. (NASDAQ:AMD) is a semiconductor company that designs and manufactures computer processors (CPUs), graphics processing units (GPUs), and related technologies. It serves various markets, including gaming, data centers, and embedded systems.
Advanced Micro Devices Inc. (NASDAQ:AMD) has significant potential as the next generation of AI models demands more computing power. Consequently, it has taken calculated steps to set itself up for long-term success while lagging behind Nvidia in the GPU market. In late 2023, AMD entered the data center GPU market with the MI300, which saw strong demand, driving its data center AI sales to over $5 billion in 2024—around 20% of its total revenue. AMD’s data center revenue nearly doubled in 2024.
With the impending $4.9 billion acquisition of ZT Systems, Advanced Micro Devices Inc. (NASDAQ:AMD) should be able to expand its data center operations. Additionally, it has promising prospects in the consumer PC central processing units (CPUs). Revenue in its customer segment increased due to the high demand for these chips by 52% last year as it capitalizes on a strong upgrade cycle in the PC market.
5. Meta Platforms, Inc. (NASDAQ:META)
Appaloosa Management LP’s Equity Stakes: $286.90 Million
Number of Hedge Fund Holders: 262
Meta Platforms, Inc. (NASDAQ:META) is a communications services company that owns and operates social media platforms Facebook, Instagram, WhatsApp, and Messenger. With over 3.3 billion daily active users using at least one of its social networking apps, it continues to unlock growth opportunities in the lucrative digital advertising business.
The vast data collected from the apps has allowed Meta Platforms, Inc. (NASDAQ:META) to support some of the most effective advertising campaigns from which it generates a significant chunk of its revenues. Similarly, the tech giant is leveraging artificial intelligence to enhance user experience and app engagement levels. With its popular Meta AI assistant, the company is a leader in the field of agentic AI. It intends to invest $60 billion to $65 billion in data center expansions connected to AI.
The strong expansion of Meta Platforms, Inc.’s (NASDAQ:META) advertising division generated $46.8 billion in revenue in Q4 2024, up 21% year-over-year. The increase was fueled by investments in artificial intelligence. Because of its strong ad targeting capabilities, the company enjoys higher advertiser demand and ad pricing on its platforms.
4. Alphabet Inc. (NASDAQ:GOOGL)
Appaloosa Management LP’s Equity Stakes: $358.40 Million
Number of Hedge Fund Holders: 234
Alphabet Inc. (NASDAQ:GOOGL) is a technology company that owns some of the most popular internet brands, including Google and YouTube. The internet giant also flexes its muscle in healthcare self-driving cars, artificial intelligence, and digital advertising. With over 90% market share, it is the dominant force in the search engine business from which it unlocks growth opportunities.
Artificial Intelligence presents a significant opportunity as the Google search engine leverages the technology to boost advertising campaigns and search results. Since advertisements account for almost three-quarters of Alphabet Inc.’s (NASDAQ:GOOGL) revenue, it is imperative that it maintains its leadership position in this area.
In addition to pursuing growth around the search business, cloud offerings have emerged as key growth drivers. Revenues in the cloud unit were up by 30% year over year in Q4 2024, which helped bolster the bottom line. Alphabet Inc. (NASDAQ:GOOGL) also announced plans to pay $32 billion to acquire cybersecurity startup Wiz. The acquisition will give Google Cloud another edge over its rivals by providing excellent cloud detection and response (CDR) security. The acquisition would provide Alphabet with a fresh growth opportunity and significantly increase its services.
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.
2. Amazon.com, Inc. (NASDAQ:AMZN)
Appaloosa Management LP’s Equity Stakes: $570.41 Million
Number of Hedge Fund Holders: 338
Amazon.com, Inc. (NASDAQ:AMZN) is the largest online retailer that sells consumer products, advertising, and subscription services. It also flexes its muscles in cloud computing, whereby it is the market leader and offers electronic devices. While the company primarily derives the bulk of its revenues from its online marketplaces, a significant portion of its profits is generated by its cloud division, AWS, which is expanding at a vigorous rate.
In February, Amazon.com, Inc. (NASDAQ:AMZN) released its financial results for the fourth quarter ending December 31, 2024. AWS contributed just 17% to its overall sales in 2024 but accounted for 58% of its operating profit, with revenues growing 19% to $28.8 billion. Much of this growth can be attributed to the AI sector, which has prompted many businesses to enhance their cloud infrastructure.
Advertising also represents a key area that underscores Amazon’s growth statistics. This is largely due to Amazon.com, Inc.’s (NASDAQ:AMZN) extensive customer base and data, which it leverages to attract advertisers. In the fourth quarter, advertising service revenues increased by 18% year over year to $17.3 billion. Analysts expect Amazon’s revenue and earnings per share (EPS) to grow at compound annual growth rates (CAGRs) of 10% and 20% between 2024 and 2027. Its growth is expected to gain momentum as the overall economic landscape improves and the AI market continues to flourish.
1. Alibaba Group Holding Limited (NYSE:BABA)
Appaloosa Management LP’s Equity Stakes: $1 Billion
Number of Hedge Fund Holders: 107
Alibaba Group Holding Limited (NYSE:BABA) is a technology giant specializing in e-commerce, retail, internet, and technology. It provides platforms and services for businesses to market, sell, and operate online. Additionally, it is a top growth stock in Appaloosa Management’s portfolio, offering significant exposure to the Chinese economy.
Alibaba Group Holding Limited (NYSE:BABA) reported solid earnings for the December quarter of 2024. It is increasingly investing in artificial intelligence to enhance its e-commerce and cloud computing offerings. The investments are already paying off, given that Cloud intelligence revenue was up 13% in December. The Chinese internet giant is also starting to collaborate with other top tech firms. In a major victory, Apple has decided to leverage Alibaba’s AI model to power its Apple Intelligence service.
Alibaba Group Holding Limited (NYSE:BABA) is also showing indications of reviving its e-commerce sector in addition to its AI prospects. These efforts began to pay off last quarter, as overall segment sales increased 5% and third-party revenue increased 9%. Growth is also being driven by Alibaba’s emerging ventures, including the cross-border businesses AliExpress and Trendyol, which target local retailers in Turkey and the Middle East.
While we acknowledge the potential of Alibaba Group Holding Limited (NYSE:BABA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BABA but that trades at less than 5 times its earnings check out our report about the cheapest AI stock.
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