Missed Out on Nvidia? Billionaires Are Buying These 3 Artificial Intelligence (AI) Stocks Hand Over Fist
Why are billionaires investing heavily in AI stocks?
Billionaires are investing heavily in AI stocks due to the technology's potential to revolutionize various industries and its significant growth prospects. AI has already made a significant impact on the market with products like ChatGPT, and its full potential is yet to be realized. Top fund managers are capitalizing on this opportunity to capture as much value as possible from AI's explosive growth.
What led David Tepper to increase his Alibaba position?
David Tepper, the founder of Appaloosa Management, increased his stake in Alibaba by 159% in the first quarter of 2024. This move was influenced by a few factors: Alibaba's cheap valuation, with the stock trading at a P/E ratio of around 20; the company's growth, as its net income increased by 9% from the previous fiscal year; and the potential for a turnaround in the Chinese economy, as Chinese officials have recently contemplated buying unfinished housing projects from bankrupt developers, which would help stabilize the economy5.
How has Alibaba's stock price trended since 2020?
Alibaba's stock price has experienced a decline since 2020, with a drop of almost 75% from its high that year. The company faced a delisting threat in 2022 due to its refusal to allow the SEC to see its internal financial audits because of its association with the Chinese Communist Party. However, the issue has been resolved, and the stock has remained steady so far in 2024.