David Tepper’s Appaloosa Management’s Q2 Moves

David Tepper’s investment firm, Appaloosa Management, made significant investments in large technology stocks during the second quarter, while also parting ways with a previously high-performing memory chip manufacturer. A regulatory filing indicates that Tepper increased Appaloosa’s stake in Amazon by over 15%, bringing its total to nearly $1.2 billion. This makes Amazon the largest holding among hedge funds, as reported by Insider Score.

Mr. Tepper’s investments didn’t stop there. His position in Meta Platforms expanded by about 55%, now valued at around $380 million. Additionally, he increased his holdings in Alphabet by nearly 7%, giving that stake a worth of over $661 million. Tepper also boosted his investment in Apple, contributing to a total of more than $241 million during the latest quarter.

However, there was some trimming in his portfolio as well. Tepper reduced his stake in Micron Technology by more than 41%, even though it still holds the No. 2 position in his investments, valued at roughly $1.125 billion. This reduction is interesting, especially considering Tepper’s strong ties to the booming artificial intelligence sector. It seems he anticipated the downturn in memory stocks that followed July’s highs. Micron’s shares had surged more than 240% in the second quarter—the stock’s largest quarterly increase ever—as the market shifted focus to AI hardware demands. However, it has since dropped nearly 16% since early July amid a general downturn in the memory chip industry.

Despite the recent volatility, analysts remain optimistic about Micron. Many still rate it as a buy, anticipating a nearly 51% increase in the coming year, according to LSEG data. It’s worth noting that, even with the recent fluctuations, Micron’s stock has risen a staggering 240% year-to-date.

Additionally, Tepper divested over $400 million in SanDisk stocks. Memory stocks, after rising about 258% during the March to June period, have since declined nearly 28% in the third quarter. Interestingly, sources mentioned that Appaloosa has been purchasing more memory stocks since the quarter concluded, following the sector’s recent weaknesses.

Beyond tech, graduates from the University of Pittsburgh and Carnegie Mellon University have also made their mark by securing positions in Boeing and American Airlines, valued at approximately $173 million and $136 million, respectively. On the flip side, Tepper has sold positions in Corning, L3Harris, and RTX.