David Tepper allocates 40% of his $7.7B fund to just three AI stocks
Appaloosa Management's latest 13F filing reveals a massive bet on Amazon, Micron, and Taiwan Semiconductor as AI infrastructure plays
David Tepper, the billionaire behind Appaloosa Management, has placed a staggering concentration bet on AI infrastructure. His fund’s Q2 2026 13F filing shows that roughly 40% of its $7.7 billion portfolio sits in just three stocks: Amazon, Micron Technology, and Taiwan Semiconductor Manufacturing.
Inside the portfolio: chips, cloud, and memory
Amazon claims the top spot at roughly 15.4% of total assets. Tepper holds 5 million shares valued at approximately $1.19 billion, making it the single largest line item across Appaloosa’s 27 positions.
Micron Technology and Taiwan Semiconductor round out the trio. Micron manufactures the high-bandwidth memory chips that AI accelerators devour, while TSMC fabricates the advanced processors that power everything from Nvidia’s GPUs to Apple’s custom silicon. Together with Amazon, these three names account for about $3.1 billion of Appaloosa’s holdings.
During Q2 2026, Tepper increased his stakes in both Amazon and TSM. Over three-quarters of Appaloosa’s portfolio is now linked to AI growth in some form.
The fund also added Nvidia back to the portfolio after previously trimming that position. Earlier filings had shown a prior concentration of about 28% in Nvidia, Amazon, and Microsoft.
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New bets and a well-timed exit
Tepper initiated two notable new positions during the quarter: CoreWeave, with 1.078 million shares, and SpaceX.
On the other side of the ledger, Appaloosa completely exited its SanDisk position. SanDisk had rallied 591% year-to-date before Tepper sold, and the position was valued at roughly $179 million at the end of the prior quarter.
What the concentration means for markets
For retail investors watching Tepper’s moves as a signal, context matters. Hedge fund 13F filings reflect positions as of the filing date, meaning Tepper could have already adjusted his holdings by the time the public sees them. The filings also don’t capture short positions, options strategies, or international holdings that might offset the apparent concentration.
Appaloosa’s filing shows zero exposure to cryptocurrency or digital asset investments, keeping its focus squarely on public equities and select private companies tied to AI advancement.