TLDR
- Billionaire investor David Tepper’s Appaloosa Management sold all positions in Intel and Oracle during Q3 2025
- Tepper started a new $154 million position in AMD, representing 2% of the portfolio
- Appaloosa added 150,000 shares to its Nvidia position, now 4.8% of total portfolio
- Nvidia has $150 billion in Blackwell and Rubin orders shipped with $350 billion scheduled by end of 2026
- AMD faces execution concerns from analysts despite growth potential, while Nvidia receives stronger buy ratings with 45 buy recommendations
Billionaire hedge fund manager David Tepper made sweeping changes to his AI semiconductor holdings in the third quarter. His fund Appaloosa Management completely exited positions in Intel and Oracle while building new stakes in AMD and expanding its Nvidia holdings.
The moves reveal Tepper’s strategy to capture growth in AI infrastructure. The legendary investor is known for contrarian bets and finding value during market uncertainty.
Appaloosa’s quarterly 13F filing with the SEC shows the fund sold all Intel shares. The chip maker has struggled with a slow foundry transition and lost market share to AMD in data centers and PCs. Intel’s cheap valuation no longer fits Tepper’s investment approach of avoiding companies without growth catalysts.
Oracle also got the boot despite strong cloud and AI database demand. The stock had gained value but faces concerns about capital spending requirements and high debt levels. Tepper likely took profits to redeploy capital into higher-growth opportunities.
The AMD Bet
Tepper built a $154 million AMD position representing 2% of Appaloosa’s portfolio. AMD is the only major GPU supplier besides Nvidia in the AI market. Global semiconductor sales are projected to reach $1 trillion by 2030.
Advanced Micro Devices, Inc., AMD
AMD’s data center revenue grew 22% year over year to $4.3 billion in Q3. The company sees strong demand for its MI300, MI325 and MI350 GPU series from hyperscalers and large enterprises. AMD secured multi-year supply deals with Oracle and OpenAI for its upcoming MI400 GPU series.
Analysts give AMD 31 buy ratings but also 11 hold ratings. The consensus lands at “moderate buy” with price targets around $278 per share. This represents 35% upside from current levels near $206.
Morgan Stanley maintains a neutral stance on AMD. The bank questions whether AMD can take meaningful market share from Nvidia’s dominant position. These execution concerns temper analyst enthusiasm compared to Nvidia.
Nvidia Expansion
Tepper added 150,000 Nvidia shares, bringing it to 4.8% of Appaloosa’s holdings. Nvidia remains the backbone of AI infrastructure buildout. Data center revenues jumped 66% year over year to $51.2 billion in Q3.
The company has shipped $150 billion in Blackwell and Rubin system orders. Another $350 billion in orders are scheduled for delivery by the end of 2026. Recent deals with Saudi Arabia’s Humain subsidiary and Anthropic expand opportunities beyond $500 billion.
Nvidia trades at 44.6 times earnings while AMD trades at 105.9 times earnings. Both valuations price in substantial future growth expectations.
Analysts show stronger support for Nvidia with 45 buy ratings and only 3 hold or sell ratings. The consensus is a firm buy with average price targets around $256 per share. This implies 41.6% potential upside.
MarketBeat data shows 52 analysts covering Nvidia with just 1 sell and 2 hold recommendations. The limited dissent reflects confidence in Nvidia’s execution and market leadership in AI training and inference technology.
AMD received more cautious analyst treatment from 42 analysts tracked by MarketBeat. Zero sell ratings indicate no one expects AMD to decline, but the 11 hold ratings show less certainty about growth prospects.
Stifel assigns AMD a buy rating with a $280 target, citing expanding addressable markets and margin improvements. The firm gave positive reviews to AMD’s recent Analyst Day presentations.
Nvidia is positioned to capture a large share of the $3 trillion to $4 trillion annual AI infrastructure opportunity by 2030. Tepper appears willing to tolerate short-term volatility from AI bubble fears for long-term gains.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
