TLDR
- David Tepper’s Appaloosa Management opened a new position in AMD with 950,000 shares and added 150,000 Nvidia shares in Q3 2025
- Alibaba remains the fund’s largest holding at $1.15 billion despite an 8.7% reduction, while Amazon is second after a 7.4% trim
- Appaloosa massively increased its Whirlpool position from 266,000 to 5.50 million shares, making it the third-largest holding worth $432.3 million
- The hedge fund exited positions in Intel and Oracle while adding stakes in five regional bank stocks including Truist, KeyCorp, and Citizens Financial
- AMD reported strong Q3 results with 36% revenue growth to $9.25 billion, driven by 73% growth in client and gaming segments
David Tepper’s Appaloosa Management made several major portfolio changes in the third quarter of 2025, according to its latest 13F filing. The billionaire investor opened a new position in Advanced Micro Devices with 950,000 shares while adding 150,000 shares to his existing Nvidia stake.
Advanced Micro Devices, Inc., AMD
The moves signal confidence in the ongoing artificial intelligence and data center expansion. Both AMD and Nvidia have been major beneficiaries of increased demand for AI computing power.
Alibaba remained Appaloosa’s top holding despite an 8.7% reduction in the position. The stake is now worth approximately $1.15 billion and represents 15.6% of the total portfolio.
Amazon continues as the second-largest holding after Tepper trimmed the position by 7.4%. The fund completely exited its positions in both Intel and Oracle during the quarter.
The most dramatic move was in Whirlpool stock. Appaloosa increased its position to 5.50 million shares from just 266,000 shares in the second quarter.
The Whirlpool stake is now worth $432.3 million and ranks as the third-largest holding. This comes despite the appliance maker’s stock falling 41% over the past year.
Tepper also showed renewed interest in regional banking stocks. The fund opened new positions in five banks including Truist Financial, KeyCorp, Citizens Financial, Comerica, and Zions.
At the same time, Appaloosa reduced its stake in UnitedHealth to 203,500 shares from 550,000 shares in the previous quarter.
Strong AMD Performance
AMD reported strong third quarter results that exceeded analyst expectations. Revenue jumped 36% year over year to $9.25 billion, beating the consensus estimate of $8.74 billion.
The client and gaming segment led growth with a 73% revenue increase to $4 billion. Desktop CPU sales reached an all-time high while gaming revenue surged 181% to $1.3 billion.
The gaming boost came as Sony and Microsoft prepared for holiday season sales. Both console makers use AMD’s semi-custom chips in their systems.
AMD’s data center segment grew 22% year over year driven by strong demand for EPYC CPUs and MI350 series GPUs. The company reported record CPU sales to cloud providers and hyperscalers.
The company announced a partnership with OpenAI that will begin in the second half of 2026. OpenAI will use AMD’s MI450 GPUs, potentially generating more than $100 billion in AI data center revenue for AMD in coming years.
Q4 Guidance
AMD guided for fourth quarter revenue growth of 25% to $9.6 billion, plus or minus $300 million. The company generated record free cash flow of $1.5 billion in the third quarter.
Adjusted earnings per share climbed 30% to $1.20, above the $1.16 analyst consensus. Gross margin improved to 52%, up 200 basis points from a year earlier.
AMD’s embedded segment saw an 8% revenue decrease to $857 million. However, both revenue and sell-through increased from the previous quarter.
The company is on track for a record number of design wins this year in the embedded segment. AMD stock currently trades at a forward price-to-earnings ratio of 39 times 2026 estimates.
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