Key Highlights
- Appaloosa reduced its Alibaba position by 12% and completely divested from JD.com, PDD Holdings, and the KWEB ETF
- The billionaire investor expanded his Baidu holdings by 14%, maintaining strategic China exposure
- SanDisk position liquidated entirely following a 591% surge; Micron and AMD stakes also reduced
- Amazon emerged as the top holding with 5 million shares valued above $1.1 billion
- New investment in CoreWeave initiated alongside expanded positions in Vistra and NRG Energy
On August 14, Appaloosa Management, the hedge fund operated by billionaire David Tepper, submitted its Q2 2026 13F disclosure, exposing substantial strategic shifts. The filing indicates significant reductions in Chinese technology and semiconductor holdings, accompanied by increased allocation toward AI infrastructure and energy providers.
Strategic China Repositioning
The legendary investor reduced his Alibaba holdings by approximately 12% and liquidated entire positions in JD.com and PDD Holdings. The fund also eliminated its KraneShares CSI China Internet ETF holding, signaling a withdrawal from broad-based Chinese internet exposure.
Alibaba Group Holding Limited, BABA
However, the shift wasn’t a complete China exit. Appaloosa increased its Baidu holdings by approximately 14%, establishing it as the primary Chinese investment within the portfolio.
These transactions reveal a strategy focused on selective company-specific investments rather than broad market exposure. The fund’s disclosed positions decreased from 31 to 27, even as total reported portfolio value expanded from $5.9 billion to $7.7 billion.
Semiconductor Reduction and AI Infrastructure Expansion
Within the technology sector, Tepper completely liquidated his SanDisk position following a remarkable 591% appreciation since initial purchase. Micron holdings decreased by 690,000 shares, though a substantial position of 975,000 shares remains, valued above $1.1 billion. Advanced Micro Devices and Qualcomm positions also saw reductions.
Capital exited from chips didn’t abandon artificial intelligenceāit repositioned within the ecosystem.
Appaloosa acquired 680,000 additional Amazon shares, elevating the total holding to 5 million shares. Amazon now represents the fund’s largest disclosed investment. Taiwan Semiconductor Manufacturing received additional capital, and the Nvidia position was expanded.
Most notably, Tepper established a fresh position in CoreWeave, acquiring 1,078,248 shares worth approximately $107 million. CoreWeave reports a revenue backlog exceeding $104 billion.
Energy Infrastructure: The Hidden AI Catalyst
The filing’s most significant revelation may be Tepper’s expanding electricity infrastructure thesis.
He increased holdings in Vistra and NRG Energy, independent power producers delivering electricity to data center operations. Vistra has declined nearly 8% year-to-date while NRG dropped almost 20%, creating a valuation disconnect as semiconductor stocks rallied.
Vistra recently launched Helix Digital Infrastructure in partnership with Nvidia, KKR, and the Kuwait Investment Authority. NRG committed $3.2 billion toward constructing a 1.2-gigawatt Texas facility for a major hyperscaler, projecting $500 million in annual EBITDA.
Department of Energy forecasts suggest data centers may consume 12% of total U.S. electricity by 2028.
Tepper’s positioning suggests a conviction that regardless of which companies dominate AI chip production, all will require massive electricity infrastructure. Vistra currently trades around 16 times forward earnings and NRG at 14 times, representing significant discounts compared to chip designers.
This 13F filing represents holdings as of June 30, 2026. Current positions may differ from reported figures.
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