In the second quarter, David Tepper's Appaloosa Management made substantial investments in prominent technology firms, notably increasing its stake in Amazon by over 15%, bringing its total investment to nearly $1.2 billion, which remains the hedge fund's largest holding.
Tepper also expanded his positions in Meta Platforms by almost 55% to about $380 million and increased his Alphabet stake by nearly 7% to over $661 million. Additionally, he initiated a new position in Apple valued at more than $241 million. Conversely, Tepper reduced his investment in Micron Technology by more than 41%, despite it being his second-largest holding at approximately $1.125 billion.
This decision comes as Micron's shares experienced a dramatic rise of over 240% in the second quarter, driven by AI-related hardware demand, but have since declined nearly 16% since July. Analysts maintain a positive outlook on Micron, with an average buy rating and an estimated upside of nearly 51% over the next year.
Tepper also divested a stake in Sandisk worth over $400 million, which has seen a nearly 28% drop in the third quarter after a significant rise earlier in the year. Interestingly, after the quarter ended, Appaloosa reportedly increased its position in memory stocks, indicating a potential rebound strategy.
Outside the tech sector, Tepper established new positions in Boeing and American Airlines, valued at $173 million and $136 million, respectively, while selling off stakes in Corning, L3Harris, and RTX