Artificial intelligence (AI) stocks have been major market movers in recent quarters -- and for good reason. AI promises to join many other discoveries and technologies that have been game changers. JPMorgan Chase Chairman Jamie Dimon has said AI could be as transformational as electricity and the internet. So, it's no surprise that investors have been piling into potential AI winners.

But, there are so many AI stocks out there that you may be wondering how to choose those that will indeed score an AI victory. The good news is there's room for more than one success story in this space, and that means there are plenty of moves investors can make today that should lead to portfolio growth over the long term. You don't have to worry about making one key decision or investing in just one stock.

Still, it's a great idea to consider what experts are doing these days, as sometimes we can add some of their ideas to our own investment plan. And with this in mind, I'm taking a look at recent moves by billionaire David Tepper. The founder of Appaloosa Management has proven his strengths over time with the fund delivering an annualized average return of 28% since its launch back in the early 1990s. How is Tepper investing right now to win in AI? Let's find out.

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A big investor in tech stocks

The billionaire is a big investor in technology stocks, with a particular focus on well diversified e-commerce companies: Appaloosa Management's two biggest holdings as of the end of the latest quarter were Alibaba and Amazon (NASDAQ: AMZN). But in the quarter, the fund slightly lowered its positions in certain tech stocks -- including Amazon -- in favor of one stock that's been roaring ahead in the AI race and led gains in the Dow Jones Industrial Average last year.

Here are the details of Tepper's sells, according to a summary of its trades in the fourth quarter of 2024:

• Tepper cut his fund's olding in Amazon by 18% and now holds 2.6 million shares.
• He decreased his holding in Meta Platforms by 21% and now holds 490,000 shares.
• The billionaire reduced his holding in Oracle (NYSE: ORCL) by 11% and now owns 1.4 million shares.

And here's the AI buy in the most recently reported quarter:

• This top investor increased his fund's position in Nvidia (NVDA -2.80%) by more than 8% to 680,001 shares.

Of course, Tepper's biggest AI bets remain Amazon and Oracle as they make up a larger part of his portfolio. But the move to increase his position in Nvidia signals he sees more potential ahead for this AI leader, even though the stock has soared about 800% over the past two years.

Should you follow David Tepper's moves?

So, should you follow Tepper's move and buy Nvdia shares? I think so.

What I like about Tepper's AI strategy is that he's invested across many top players that already are benefiting from AI. For example, Amazon's cloud business recently reached a $115 billion revenue run rate thanks to its AI products and services. And Oracle says "record" AI demand drove its cloud infrastructure revenue up more than 50% in the latest quarter.

Even though Tepper reduced some of these positions, he's still well diversified across these high-potential companies and isn't betting on just one player. But the move to increase the Nvidia stake was a smart one -- and the tech giant makes a great buy for any investor looking to potentially score an AI win.

Nvidia dominates the AI chip market and also is a powerhouse across the industry as it offers a broad range of related products and services. This has been driving double- and triple-digit revenue growth quarter after quarter, and Nvidia's focus on innovation suggest this could continue well into the future. And right now, the stock is trading for a particularly low valuation, at only 29 times forward earnings estimates, offering investors a fantastic entry point.

All of this means it's a great idea to follow billionaire David Tepper by holding a variety of strong AI players...and picking up more shares of Nvidia.