Ratings of Nvidia Corp (NASDAQ:NVDA). #5 on our list of the 10 best AI stocks to buy for 2024 according to billionaire David Tepper.
Before analyzing the stock, let's first look at David Tepper's latest returns and his investment strategy for 2024.
Billionaire David Tepper of Appaloosa Management made headlines recently when his latest portfolio showed the 66-year-old owner of the Carolina Panthers piling up Chinese stocks while clearly putting his exposure to megacap tech stocks. are reducing the exposure that has already rewarded him so much. Quarters, thanks to the rally led by AI. The taper bet on Chinese stocks comes at a time when many analysts are predicting a recovery in the Chinese economy as the government begins to prepare more rescue plans for the battered property sector. The MSCI China index is up nearly 10 percent since the end of March.
David Tepper, who founded Appaloosa Management in 1993, returned 20% last year, thanks to his large stake in AI stocks. A quick analysis of David Tepper, who is worth more than $20 billion, shows that he was piling into AI stocks when he was just starting out. This was not an extraordinary or one-off success on the part of the billionaire. Tapper has posted a 28% annualized return for investors before fees, according to Bloomberg data. In 2022, when markets were falling amid a storm of inflation and rising interest rates, Appaloosa returned 12.5%. Tepper's instincts and grasp of the financial markets were strong even when he was in his late 20s and 30s, making huge profits for Goldman Sachs, which he joined in 1985.
Tepper rose to fame at Goldman when his portfolio took off in the wake of the 1987 stock market crash. The Alpha Masters: Unlocking the Genius of the World's Greatest Hedge FundsWritten by Manit Ahuja, Tapper recalled:
“Going into the crash I had my entire portfolio set up as short—I had no long positions. I made a fortune during and after the crash,” he laughs. “It was so cool.” Unfortunately, neither did the rest of the firm. “I still got a raise but not as much as I should have.”
Nvidia Corp (NASDAQ:NVDA)
Billionaire David Tepper Q1'2024 Stake Value: $399,373,520
David Tapper piled into Nvidia Corp ( NASDAQ:NVDA ) when it was just getting started. The billionaire bought 150,000 shares of Nvidia Corp (NASDAQ:NVDA) valued at $216.41 per share in 2023Q1. In the very next quarter, the billionaire increased his stake in Nvidia Corp (NASDAQ:NVDA) to one million shares and held the stake until the third quarter of 2023. However, Tepper reduced his stake in Nvidia Corp (NASDAQ:NVDA). In Q4 2023 and Q1 2024, Nvidia Corp (NASDAQ:NVDA) ended March quarter of this year with 442k shares.
Appaloosa may be reducing its stake in Nvidia Corp (NASDAQ:NVDA) but other hedge funds are piling into the stock. Inside Monkey's ownership database of 919 hedge funds, updated for the first quarter of 2024, shows that 186 hedge funds held Nvidia Corp (NASDAQ:NVDA) at the end of the March quarter, up from the previous quarter. There were more than 173 hedge funds in the month.
Aristotle Atlantic Focus Growth Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its first quarter 2024 investor letter:
“NVIDIA Corporation ( NASDAQ:NVDA ) contributed to the portfolio's performance in the first quarter, as the company saw a pick-up in demand from hyperscalers and enterprises for its GPU semiconductors. Nvidia's GPU semiconductors remain the industry's key building blocks of accelerated computing data center architecture to power AI computing and applications.”
Nvidia Corp (NASDAQ:NVDA) #5 on our list of top 10 AI stocks for 2024 according to billionaire David Tepper.
If you're looking for an AI stock that's as promising as Microsoft but trades at less than 5 times its earnings, check out our report on the cheapest AI stocks.
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Disclosure: None. This article originally appeared on Insider Monkey.