Billionaire David Tepper Just Bought These 2 Artificial Intelligence (AI) Stocks That Wall Street Thinks Could Soar by 50% or More

Billionaire David Tepper, the founder and president of the hedge fund Appaloosa Management, is particularly bullish on technology and artificial intelligence (AI) stocks. The firm's portfolio features several industry leaders, including Amazon (NASDAQ:AMZN), Micron Technology (NASDAQ:MU), Taiwan Semiconductor Manufacturing (NYSE:TSM), and Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL), with these four accounting for roughly 50% of the portfolio. David Tepper and his team are doubling down on AI.

During the second quarter, Appaloosa Management added Space Exploration Technologies (NASDAQ:SPCX) and CoreWeave (NASDAQ:CRWV) to the portfolio. Tepper and his team aren't the only ones who are optimistic about these companies' prospects. Average price targets from Wall Street imply that SpaceX and CoreWeave could both rise meaningfully over the next 12 months. Are these stocks worth buying now?

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SpaceX set the record for the largest IPO ever in June. The stock has been volatile since then, rising to as much as $225.64 and falling as low as $104.83. As of writing, shares are changing hands for about $148 apiece, slightly down from its $150 opening price. Wall Street thinks there is far more upside ahead, though. The company's average price target is $222.32, according to Yahoo! Finance. That implies a 50% upside from current levels. On the one hand, SpaceX's business looks strong.

Revenue grew rapidly -- by 92% year over year to $7.8 billion -- during the second quarter. The company remains unprofitable, but its net loss per share almost halved in the period, going from $1 billion to $541 million. What's more, analysts expect revenue growth to remain healthy and for the company to turn profitable soon, even as it continues to invest large sums in its AI-related ambitions.

And it's worth noting that AI revenue grew much faster than the company average during the second period. That's before we even consider that SpaceX is also making progress in its space segment, with Starship test flights going well, and that its Starlink satellite connectivity business could expand into a major global carrier. Everything seems to be going great for SpaceX. Except that the stock looks expensive, trading at a price-to-sales ratio of 69.1.