Appaloosa Management founder David Tepper is among the best-known smart money investors out there. His fund is closely watched by those in the investment community, given Tepper’s long-term investing track record and ability to spot trends.

David Tepper recently released his portfolio updates for the second quarter. In this update, he highlighted a series of moves that shocked many investors.

Tepper bought 1.275 million shares of Baidu (NASDAQ:BIDU) during the quarter, a new position for his fund. This position is now worth a whopping $167 million at the time of writing. Another top Chinese tech stock Tepper added was Alibaba (NYSE:BABA). He added 4.375 million shares to his existing position of only 100,000 shares during the quarter.

Outside of China, one of the more surprising bets Tepper made during Q2 was beefing up his already massive stake in Nvidia (NASDAQ:NVDA). Now one of Appaloosa’s largest holdings, Tepper owns 1.02 million shares, up from only 150,000 shares the quarter prior. In other words, Tepper added a whopping 870,000 shares during Q2.

Let’s dive into what investors may want to make of these moves.

David Tepper Is Betting Big on These Stocks

I have to say, David Tepper’s bets on Baidu and Alibaba are interesting. Chinese technology stocks do have some positive momentum (or, at least, not downright negative momentum) at the moment. And given their relative valuations compared to U.S. tech stocks, there’s a lot to like about these companies from a fundamentals perspective. If U.S.-Chinese tensions settle down, this is a group that could certainly outperform from here. In any case, it’s one worth watching if Mr. Tepper is betting heavily like this.

The Nvidia bet this past quarter is certainly an intriguing one. It’s unclear exactly how much Tepper paid for his position. And we won’t really know if that was a smart move until later today, when the company reports earnings.

But it’s clear David Tepper has a much more bullish outlook on these three stocks that the average investor right now. Personally, I’m going to watch these stocks closely from here, and will provide updates on these names as they come.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.