TLDR
- David Tepper’s Appaloosa Management significantly increased holdings across five artificial intelligence-focused technology companies in Q4
- The hedge fund tripled its Micron Technology position to 1.5 million shares as memory chip demand reaches unprecedented levels
- Alphabet’s position grew 28.7% as the company achieved $400 billion in annual revenue with Google Cloud accelerating 48% annually
- Meta’s Q4 results showed $59.89B in revenue, but investor concerns center on planned AI infrastructure spending of $115–$135B
- Microsoft trades at compressed valuation multiples after shares retreated over 25% from record highs
Billionaire investor David Tepper filed his quarterly 13F disclosure on February 17, unveiling strategic portfolio changes at his hedge fund Appaloosa Management. Operating a focused investment strategy with just 45 equity positions, Tepper modified five stakes among his largest ten holdings throughout the quarter.
The fund increased its Alphabet stake by 28.7%, acquiring 399,431 additional shares to elevate the position to roughly 8.1% of managed capital. The technology behemoth achieved the historic milestone of $400 billion in annual revenue, propelled by Google Cloud’s remarkable 48% annual growth reaching $17.7 billion. The company recently secured recognition as America’s highest-earning corporation, outpacing technology rivals Apple and Microsoft.
The most substantial portfolio revision targeted Micron Technology. Appaloosa tripled its exposure, escalating from 500,000 shares to 1.5 million. This aggressive accumulation coincides with the memory chip manufacturer reporting complete inventory depletion through year-end, fueled by surging demand from artificial intelligence data centers. The semiconductor producer reported fourth-quarter revenue of $13.64 billion with earnings per share reaching $4.78, surpassing Wall Street expectations.
Micron and Meta: Two Very Different Bets
Micron stock has surged an extraordinary 348% across the trailing twelve months, extending gains with a 35% advance in the current year. The chip manufacturer is deploying $200 billion for manufacturing expansion, encompassing two Idaho production facilities valued at $50 billion and an enormous $100 billion fabrication complex in New York.
Tepper boosted his Meta position by 62% throughout the fourth quarter, although this investment has delivered disappointing returns. The social networking powerhouse reported fourth-quarter revenue of $59.89 billion with $8.88 earnings per share, exceeding analyst estimates. However, shares declined following third-quarter results when management unveiled ambitious capital spending blueprints.
Meta management forecasts capital investments ranging from $115 billion to $135 billion for AI infrastructure deployment through 2026. Advertising revenue contributed $58.1 billion to Q4 totals. The stock continues trading beneath previous record levels without mounting a sustained rebound.
Taiwan Semiconductor Manufacturing Company emerged as another fourth-quarter portfolio addition for Appaloosa. The semiconductor foundry fabricates the vast majority of cutting-edge logic chips essential for AI applications, establishing it as a key beneficiary of infrastructure expansion by major technology platforms.
Microsoft Trades at Historically Low Valuation
Microsoft garnered a modest 8% position expansion from Tepper during the fourth quarter. The enterprise software leader’s stock price contracted sharply after its latest earnings announcement and presently trades more than 25% beneath all-time peak valuations. The equity’s price-to-earnings ratio has compressed to levels unseen for a considerable timeframe.
Appaloosa’s next 13F filing, documenting first-quarter 2026 activity, should arrive approximately mid-May. That disclosure will clarify whether Tepper exploited the market downturn to accumulate additional Microsoft shares.
Alphabet stock currently trades around $307. Micron shares are positioned near the $415 mark. Meta stock is priced at approximately $655.
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