We published an article titled 10 shares of billionaire David Tepper with huge upward potential. In this article, we will explore representatives of other stock picks from Qualcomm Corporation (NASDAQ:QCOM) and David Tepper.
As of May 2, 2025, the S&P 500 index returned 12.29% over the past 12 months. During the same period, hedge fund manager David Tepper and his team at Appaloosa Management LP managed to return 26.29%. The performance gap widened sharply when you extended to three years - Appaloosa's return was 84.79% at the time, while the S&P 500 had 11.02%.
Billionaire David Alan Tepper has always been an interesting character. Some people, especially those who support the Carolina Panthers, see him as a villain. But the NFL owners are often subject to severe scrutiny and criticism. Panthers fans may not approve of the billionaire’s decisions, but his net worth ($21.3 billion as of May 2025) makes it clear that he makes better investment decisions than most investors. And he has been doing this for a long time, as Appaloosa has an average annual rate of return of more than 25% since its inception 32 years ago.
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But even in the investment world, Teper can sometimes be unconventional. It is ready to read when Appaloosa filed for the 13F application for the fourth quarter 2024. Tepper spent the season all out. He raised his stake in Chinese tech stocks to this point, with one company accounting for about 16% of the hedge fund holdings.
The interesting (perhaps unconventional) little bit of Tepper's bet is that they happened when the tariff wars were brewing between the United States and China. When asked to comment on this reality, Tepper said, "I don't care. You know I'm sitting here in a suit. My counter bet is that I don't care." In other words, billionaire hedge fund managers don't care about tariffs.
But should he? Analysis shows that Trump's tariffs have affected technology stocks in the United States and China. For example, by April 2025, Trump's tariffs on China's imports escalated to 145%, resulting in a preliminary decline in the technology indexes of both countries. The S&P 500 Information Technology Index fell 9.76%, while the CSI Overseas Internet Index cut 18.94%. Between April 3 and May 2, 2025, the U.S. technology index increased by 10.84%. During the same period, China's technology index fell by 2.55%. Therefore, it can be concluded that tariffs will harm Chinese tech stocks more than US tech stocks.
This view is crucial because, as mentioned earlier, Tepper's stock portfolio is dominated by U.S. and Chinese tech stocks. A Chinese tech giant accounts for about 16% of its portfolio. This reality is worrying for investors who don’t have the experience and savvy of billionaire hedge fund managers.
However, this particular case is what defines Tepper: he takes the risk, which is often paid off from Appaloosa's return profile.
We reviewed the SEC Q4 2024 13F file for Appaloosa Management LP to pick stocks on this list. Our focus excludes non-equity holdings, such as options and ETFs. Judging from the results, we have obtained an average of 12 months analyst target target per stock as of May 5, 2025. We then focused on only at least 30% of the stock and then chose the top 10. This list is arranged in ascending order.
Why are we interested in stocks that hedge funds to accumulate? The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our strategy for quarterly newsletters selects 14 small and large stocks every quarter, returning 373.4% since May 2014, beating its benchmark by 218 percentage points (See more details here).
A technician tested the latest 5G devices, demonstrating the company's commitment to innovation.
Appaloosa Management Benefit Value: $122,896,000
As of May 5: 32.80%
Number of hedge fund holders: 79
Qualcomm Corporation (NASDAQ:QCOM) is a global wireless technology company. It designs and manufactures semiconductor chips for smartphones, automotive systems, Internet of Things (IoT) devices and network devices. The company operates through Qualcomm CDMA Technology (QCT) and Qualcomm Technology Licensing (QTL).
Qualcomm Corp. (NASDAQ:QCOM)'s Q2 2025 financial report shows that the company's growth trajectory is strong. In the quarter, non-GAAP revenue reached $10.8 billion, a year-on-year increase of 15%, while non-GAAP earnings per share hit $2.85, an increase of 17% from the same period last year. The QCT sector accounts for the majority of this revenue, with revenue of $9.5 billion. Qualcomm Corp. (NASDAQ:QCOM) increases its total return on capital target to 100% free cash flow for fiscal 2025. It also raised its quarterly cash dividend to an annual salary of $3.56 per share.
Even in the shackles of the wireless technology industry, Qualcomm (NASDAQ:QCOM) is working to improve its dominance. In the second quarter of fiscal 2025, the company launched several groundbreaking products and established strategic partnerships. It announced the Qualcomm X85 5G Modem RF Platform, which is described as "the world's most advanced modem to the Andertenner system". In the industrial Internet of Things space, Qualcomm (NASDAQ:QCOM) acquired Edge Impulse Inc. to enhance its AI capabilities.
On May 1, 2025, Susquehanna lowered its price target for Qualcomm (NASDAQ:QCOM) from $210 to $190, but remained positive for the stock. Analysts said in a study that despite the firm’s financial situation, the future could be shaky as they could lose 30% of Apple’s share of I17 modem (NASDAQ: AAPL).
Overall QCOM Ranked eighth There is huge upside potential in the stock picks of our billionaire David Tepper. Although we acknowledge the potential of QCOM as an investment, our belief is that AI stocks have higher returns in a shorter time frame and do this in a shorter time frame. AI stocks have risen since the beginning of 2025, while popular AI stocks have lost about 25%. If you are looking for more promising AI stocks than QCOM, but their earnings are trading at less than 5 times the price, check out our report The cheapest AI stock.
Read next: According to billionaires, there are 20 best AI stocks available now, and 30 best stocks to buy now.
Disclosure: None. This article was originally published in Internal monkey.