David Tepper's Appaloosa is the 12th most profitable hedge fund in history as measured by net gains since inception. The hedge fund returned 58% during the three-year period that ended in March 2024, while the S 500 (SNPINDEX: ^GSPC) returned just 32% during the same period. That makes Tepper an excellent case study for investors.

With that in mind, Tepper had nearly 25% of his Appaloosa portfolio invested in three artificial intelligence stocks as of the March quarter: Amazon (NASDAQ: AMZN) accounted for 10%, (NASDAQ: MSFT) accounted for 8.7%, and Nvidia (NASDAQ: NVDA) accounted for 5.9%. All three stocks have been brilliant investments over the last five years, outperforming the S 500, and Tepper clearly remains confident in their ability to beat to the market.

Are these technology stocks worthwhile investments?

Continue reading

Source Fool.com