Key Takeaways
- Appaloosa Management reduced its Alibaba position by 12% and completely divested from JD.com, PDD Holdings, and the KWEB ETF
- Despite broader China pullback, Tepper boosted his Baidu holdings by 14%, signaling targeted rather than wholesale retreat
- The hedge fund liquidated its entire SanDisk position following a massive 591% gain and reduced holdings in Micron and AMD
- Amazon climbed to become the portfolio’s top disclosed holding with 5 million shares valued above $1.1 billion
- New investments include CoreWeave shares and expanded positions in electricity providers Vistra and NRG Energy
Billionaire hedge fund manager David Tepper’s Appaloosa Management disclosed significant portfolio shifts in its Q2 2026 13F filing submitted on August 14. The regulatory document reveals strategic exits from Chinese technology stocks and semiconductor positions, coupled with aggressive moves into artificial intelligence infrastructure and energy generation companies.
Strategic Pullback from Chinese Markets
Appaloosa reduced its Alibaba holdings by approximately 12% during the quarter and liquidated positions entirely in JD.com and PDD Holdings. The fund also dumped shares of the KraneShares CSI China Internet ETF, effectively eliminating broad-based exposure to Chinese internet companies.
Alibaba Group Holding Limited, BABA
However, Tepper’s strategy wasn’t a complete abandonment of Chinese equities. The fund increased its Baidu investment by roughly 14%, positioning it as the primary Chinese holding remaining in the portfolio.
These adjustments suggest a shift toward company-specific conviction rather than sector-wide exposure to China’s technology industry. While the total number of disclosed positions decreased from 31 to 27, the aggregate portfolio value jumped from $5.9 billion to $7.7 billion.
Semiconductor Exit Funds AI Infrastructure Push
In the semiconductor space, Tepper completely liquidated his SanDisk holdings, booking profits after the stock delivered a remarkable 591% return from his initial purchase. The fund also reduced its Micron position by 690,000 shares, retaining 975,000 shares worth approximately $1.1 billion. Additional reductions hit Advanced Micro Devices and Qualcomm holdings.
Rather than retreating from artificial intelligence themes, the capital appears to have been redeployed further into the sector.
Tepper purchased an additional 680,000 Amazon shares, bringing his total stake to 5 million shares. This makes Amazon his single largest disclosed holding. He simultaneously increased positions in Taiwan Semiconductor Manufacturing and expanded his Nvidia stake.
Most notably, Appaloosa established a completely new position in CoreWeave, acquiring 1,078,248 shares worth approximately $107 million. The AI cloud infrastructure provider has disclosed a reported revenue backlog of $104 billion already secured.
Electricity Infrastructure: The Hidden AI Investment
The potentially most significant aspect of the filing centers on Tepper’s expanding wager on power generation companies.
He increased stakes in both Vistra and NRG Energy, independent electricity producers that service data center operations. Despite chip stocks rallying, Vistra has declined nearly 8% year-to-date while NRG has fallen almost 20%.
Vistra recently launched Helix Digital Infrastructure in partnership with Nvidia, KKR, and the Kuwait Investment Authority. Meanwhile, NRG announced a $3.2 billion commitment to construct a 1.2-gigawatt facility in Texas serving a major hyperscale cloud provider, projecting $500 million in annual EBITDA.
Department of Energy forecasts indicate data centers may consume 12% of total United States electricity by 2028.
Tepper’s positioning suggests a belief that regardless of which companies dominate AI chip production, all will require substantial electricity to operate. Vistra currently trades around 16 times forward earnings while NRG sits at 14 times, both significantly cheaper than semiconductor designers.
This 13F filing captures positions held as of June 30, 2026. Holdings may have been modified subsequently.
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