TLDR
- Appaloosa Management, led by David Tepper, expanded its holdings in five major AI-focused technology companies during the fourth quarter
- The hedge fund tripled its Micron holdings to 1.5 million shares amid industrywide memory chip shortages driven by AI demand
- Alphabet crossed the $400 billion annual revenue milestone, with its cloud division surging 48% year-over-year
- Meta posted Q4 revenue of $59.89 billion while announcing plans to invest between $115 billion and $135 billion in AI infrastructure
- Microsoft shares have declined more than 25% from peak levels, pushing valuations to multi-year lows
Hedge fund billionaire David Tepper submitted his firm’s 13F regulatory filing on February 17, revealing strategic adjustments Appaloosa Management executed during the final quarter. With a concentrated portfolio of merely 45 holdings, Tepper modified five positions among his top ten investments.
Tepper expanded his Alphabet position by 28.7%, purchasing an additional 399,431 shares to elevate the holding to approximately 8.1% of the total portfolio. The tech giant reported surpassing $400 billion in annual revenue for the first time in its history, with Google Cloud posting impressive 48% year-over-year growth to reach $17.7 billion. The company has recently surpassed both Apple and Microsoft to become the most profitable corporation in America.
The most dramatic shift in Appaloosa’s portfolio involved Micron. Tepper tripled his exposure, expanding from 500,000 shares to 1.5 million. The semiconductor manufacturer has completely sold out its memory chip inventory for the entire year, driven by overwhelming demand from AI data center buildouts. Micron delivered Q4 revenue of $13.64 billion with earnings per share of $4.78, exceeding Wall Street expectations.
Micron and Meta: Two Very Different Bets
Micron stock has soared 348% over the trailing twelve months and gained 35% in the current year alone. The semiconductor company is committing $200 billion toward new manufacturing capacity, including two fabrication plants in Idaho valued at $50 billion combined and an additional facility near New York representing a $100 billion investment.
Tepper boosted his Meta holdings by 62% during Q4, though this particular investment has underperformed recently. Meta delivered Q4 revenue of $59.89 billion and earnings per share of $8.88, surpassing analyst projections. Despite these results, the stock experienced significant selling pressure following Q3 earnings due to investor anxiety regarding AI capital expenditures.
Meta has provided guidance indicating it will spend between $115 billion and $135 billion on AI infrastructure throughout 2026. Of the company’s Q4 revenue, advertising accounted for $58.1 billion. The stock remains below its record high and has yet to stage a meaningful recovery.
Taiwan Semiconductor represented another Q4 addition to Appaloosa’s portfolio. The foundry produces the majority of advanced logic chips powering AI hardware, positioning it as a primary beneficiary of data center capital expenditures by leading technology companies.
Microsoft Trades at Historically Low Valuation
Microsoft experienced a modest 8% increase in Tepper’s stake during the fourth quarter. The software giant’s shares tumbled following its most recent quarterly report and now trade more than 25% below their peak. The stock’s price-to-earnings ratio has compressed to levels not observed in considerable time.
Appaloosa’s subsequent 13F disclosure, covering the first quarter of 2026, is expected to be filed around mid-May. That report will reveal whether Tepper accumulated additional Microsoft shares during the ongoing pullback.
Alphabet shares are currently changing hands near $307. Micron is trading around $415. Meta is priced near $655.
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