Key Takeaways
- Appaloosa Management, led by David Tepper, expanded its holdings in five major AI-focused technology companies during the fourth quarter
- Micron’s position was expanded threefold to 1.5 million shares amid strong demand for memory chips in AI applications
- Alphabet crossed the $400 billion annual revenue milestone, with its cloud division surging 48%
- Meta delivered Q4 revenue of $59.89 billion yet sparked investor worries with its $115–$135 billion AI infrastructure investment blueprint
- Microsoft shares have declined more than 25% from peak levels, creating an attractive valuation opportunity
Hedge fund titan David Tepper submitted his quarterly 13F report on February 17, revealing strategic portfolio adjustments made by Appaloosa Management during the final quarter of the year. With a concentrated portfolio of merely 45 positions, Tepper adjusted five stocks within his top 10 holdings.
Appaloosa boosted its Alphabet holdings by 28.7%, purchasing an additional 399,431 shares to increase the position to approximately 8.1% of total assets under management. The search giant posted annual revenue exceeding $400 billion for the first time in its history, while Google Cloud revenue climbed 48% year-over-year to reach $17.7 billion. The tech behemoth recently surpassed both Apple and Microsoft to become the nation’s most profitable corporation.
The most dramatic portfolio shift involved Micron. Tepper expanded this position by 200%, increasing from 500,000 shares to 1.5 million shares. The semiconductor manufacturer has completely sold out its memory chip inventory for the entire year, driven by overwhelming demand from AI data center operators. Micron’s fourth-quarter results showed revenue of $13.64 billion with earnings per share of $4.78, surpassing Wall Street expectations.
Contrasting Outcomes: Micron Soars While Meta Stumbles
Micron stock has delivered extraordinary returns, climbing 348% over the trailing twelve months and gaining 35% year-to-date. The company is committing $200 billion toward manufacturing expansion, including two fabrication plants in Idaho totaling $50 billion and an additional $100 billion facility planned near New York.
Tepper enlarged his Meta holdings by 62% during the fourth quarter, though this investment has underperformed. The social media giant reported fourth-quarter revenue of $59.89 billion with earnings per share of $8.88, exceeding analyst projections. Nevertheless, shares tumbled following third-quarter results as investors grew anxious about aggressive AI expenditures.
Meta has outlined plans for $115 to $135 billion in AI infrastructure capital spending throughout 2026. Advertising accounted for $58.1 billion of its fourth-quarter revenue. The stock remains well below its peak valuation and has yet to recover momentum.
Taiwan Semiconductor represented another fourth-quarter addition. The foundry produces the majority of advanced logic chips powering AI hardware, positioning it as a primary beneficiary of data center capital expenditure from technology giants.
Microsoft Reaches Compelling Valuation Territory
Microsoft experienced a modest 8% position increase from Tepper during the fourth quarter. The software giant’s shares plummeted following its most recent earnings announcement and now sit more than 25% below all-time highs. The stock’s current price-to-earnings multiple has reached levels not seen in considerable time.
Appaloosa’s upcoming 13F disclosure, covering the first quarter of 2026, is expected around mid-May. That filing will reveal whether Tepper seized the opportunity to add to his Microsoft stake during the recent pullback.
Alphabet shares are currently priced near $307. Micron is trading around $415. Meta sits at approximately $655.
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