David Tepper's Fund Allocates 31 Percent of Its Portfolio to Artificial Intelligence Stocks

Appaloosa Management, the investment fund founded by billionaire David Tepper, has allocated approximately 31 percent of its public equity portfolio to Micron Technology and Amazon shares. Reducing its stake in Micron while increasing its stake in Amazon in the second quarter, the fund is heavily weighting these two artificial intelligence-focused companies.

Appaloosa Management, founded by billionaire David Tepper, has directed a significant portion of its public portfolio to two major companies in the artificial intelligence sector. During the second quarter, the fund reduced its stake in Micron Technology by 41 percent, bringing the stock's share of the portfolio to 15.06 percent. Conversely, the fund increased its stake in Amazon shares by approximately 15.7 percent, making the e-commerce and technology giant the portfolio's largest holding, with Amazon accounting for approximately 16 percent of the total portfolio.

Micron Technology reported that its revenues surged 379 percent year-over-year to $54.2 billion in the fourth quarter of fiscal 2026, which ended on September 3. During this period, the company achieved a non-GAAP gross margin of 87 percent, while non-GAAP earnings per share rose 1,003 percent year-over-year to $33.42. Benefiting from a memory chip shortage triggered by artificial intelligence infrastructure investments, strong demand for Micron is projected to continue through at least 2028. Amazon, meanwhile, achieved a 20 percent year-over-year revenue increase in the second quarter to reach $200.6 billion, driven by contributions from Amazon Web Services and broad artificial intelligence initiatives, and reported net income of $5.75 per share, with AWS net sales increasing 37 percent to $42.2 billion.