Billionaire David Tepper's Biggest Artificial Intelligence (AI) Bet (Hint: It's Not Nvidia)

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Keith Speights, The Motley FoolSat, October 11, 2025 at 3:24 PM GMT+2 5 min readAlibaba ranks first among seven AI stocks in Tepper's top 10 holdings.Tepper built a big position in the stock largely because of the Chinese government's economic stimulus.Alibaba isn't as great a pick as it once was, but it should still be a winner over the long run.10 stocks we like better than Alibaba Group ›Billionaire David Tepper bought shares of Nvidia hand over fist in the second quarter of 2025. His Appaloosa Management hedge fund increased its stake in the stock by a whopping 483%. However, Nvidia is emphatically not Tepper's biggest artificial intelligence (AI) bet.Which stock holds that honor? Look across the Pacific. The top AI stock in Appaloosa's portfolio (and the biggest holding, period) is none other than Chinese internet giant Alibaba Group Holding (NYSE: BABA).Image source: Alibaba Group Holding.There's no doubt that Tepper likes AI stocks. Of Appaloosa's top 10 holdings, seven fit squarely in the category -- including Alibaba and Nvidia.Three of the top 10 are AI hyperscalers. Amazon ranks as Tepper's third-largest position. Google Cloud parent Alphabet is his eighth-largest holding. Microsoft, whose Azure platform trails only Amazon Web Services (AWS) in the cloud market, rounds out the billionaire's top 10.Meta Platforms and Uber Technologies aren't hyperscalers. However, they're both big players in the AI space. Meta uses AI extensively in its social media platforms. It's also the leader in the AI glasses market. Uber has referred to itself as an "AI-first" company for years, with AI integrated throughout its business.Two other members of Appaloosa's 10 biggest positions have deep AI ties. Vistra and NRG Energy provide electric power that is critical for running many data centers that host AI applications.Only Alibaba stands at the top of Tepper's portfolio, though. The stock makes up 12.4% of his total holdings. His stake in the Chinese company was valued at $801.5 million as of June 30, 2025.We don't have to guess why Tepper likes Alibaba. He told CNBC in an interview in September 2024 that he would buy "everything" in China after the country announced a huge economic stimulus.That stimulus wasn't the only thing Tepper liked about Chinese stocks, though. He also told CNBC that many Chinese stocks offered attractive valuations and solid growth prospects. Alibaba checked off both boxes.Granted, Alibaba's valuation isn't as attractive now as it once was. That's because the stock has more than doubled in 2025. Its forward price-to-earnings ratio now stands at 23.3. 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