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Key Facts on Alibaba’s Position in AI Investments
Billionaire David Tepper’s Appaloosa Management has named Alibaba Group (NYSE: BABA) as its largest holding, comprising 12.4% of the portfolio, valued at approximately $801.5 million as of June 30, 2025. This comes amid Tepper’s strategic shift towards AI stocks, with a particular focus on Chinese market dynamics influenced by recent government economic stimuli.
Despite a 483% increase in Appaloosa’s stake in Nvidia during Q2 2025, Tepper views Alibaba as a pivotal long-term investment. However, his confidence appears to be waning, as he reduced his position in the company by about 23% after selling over 2 million shares. Alibaba’s valuation has surged in 2025, with a current forward price-to-earnings ratio of 23.3, significantly higher than its starting point of below 10.
In the June quarter, Alibaba reported only a 2% year-over-year revenue growth, although its AI-related product revenue has shown consistent triple-digit percentage growth over eight consecutive quarters. The company’s Cloud Intelligence Group revenue rose by 26% year over year, further supporting Tepper’s belief in its potential to aid China’s ambition of leading the global AI space by 2030.
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