David Tepper’s hedge fund, Appaloosa Management, made headlines in the second quarter of 2025 by ramping up its Nvidia stake a staggering 483 percent, yet the firm’s biggest artificial‑intelligence wager isn’t the chipmaker. That distinction belongs to Chinese e‑commerce giant Alibaba Group Holding (NYSE: BABA), which accounts for roughly 12.4 percent of Tepper’s total portfolio—valued at about $801.5 million as of June 30 .
Alibaba’s appeal stems from its rapid AI‑driven growth and strategic position in China’s tech ecosystem. The company’s cloud‑intelligence revenue surged 26 percent year‑over‑year, and AI‑related product sales have posted triple‑digit growth for eight straight quarters, underpinning its role in China’s ambition to dominate global AI by 2030. Tepper himself told CNBC that he was drawn to Alibaba’s attractive valuation and the broader Chinese stimulus that boosted the stock’s prospects .
Beyond Alibaba, Tepper’s portfolio spreads across other AI‑heavyweights. Seven of his top 10 holdings are AI‑centric, including Nvidia, Amazon, Alphabet (Google Cloud), Microsoft (Azure), Meta Platforms, and Uber Technologies. Two additional positions—Vistra and NRG Energy—support the power needs of AI data centers, illustrating a diversified bet on the entire AI infrastructure stack .
While Tepper recently trimmed his Alibaba exposure by about 23 percent, selling over 2 million shares in Q2, the stock has more than doubled in 2025, pushing its forward P/E to roughly 23.3. Analysts note that Alibaba remains a solid long‑term play despite the reduced stake, though its valuation is less compelling than earlier in the year. Tepper’s moves reflect both profit‑taking and confidence in Alibaba’s ongoing AI momentum .
