Billionaire David Tepper runs Appaloosa Management, a hedge fund that has regularly outperformed industry peers and the broader stock market since it was founded in 1993. Indeed, Appaloosa beat the S 500 (SNPINDEX: ^GSPC) by 15 percentage points over the last three years. That suggests Tepper and his fund's investment choices are worth studying.

As of the September quarter, Tepper had 28.2% of his Appaloosa portfolio invested in just three artificial intelligence (AI) stocks: 8.8% in Nvidia (NASDAQ: NVDA), 9.4% in Amazon (NASDAQ: AMZN), and 10% in (NASDAQ: MSFT). That level of asset allocation is a clear sign of high conviction.

Here's what investors should know about these three brilliant AI stocks.

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Source Fool.com