TLDR
- Appaloosa Management, led by David Tepper, expanded positions in five major AI stocks: Alphabet, Micron, Meta, Taiwan Semiconductor, and Microsoft during Q4
- Micron holdings grew 3x to reach 1.5 million shares amid reports of year-long memory chip sellouts
- Alphabet crossed the $400B annual revenue milestone, powered by 48% growth in Google Cloud
- Meta delivered Q4 revenue of $59.89B, though investor anxiety persists over its $115–$135B AI infrastructure investment plan
- Microsoft shares have declined more than 25% from peak levels, now trading at a multi-year low valuation
David Tepper, the billionaire hedge fund manager, submitted his quarterly 13F filing on February 17, revealing the strategic adjustments made by Appaloosa Management during the final quarter of the year. With a concentrated portfolio of only 45 stocks, Tepper modified five positions within his top 10 holdings.
The hedge fund boosted its Alphabet holdings by 28.7%, purchasing an additional 399,431 shares to elevate the position to roughly 8.1% of the entire portfolio. The tech giant posted annual revenue surpassing $400 billion for the first time in company history, with its Google Cloud division surging 48% year-over-year to reach $17.7 billion. The search and cloud computing powerhouse recently claimed the title of America’s most profitable corporation, surpassing both Apple and Microsoft.
The most dramatic portfolio shift involved Micron. Tepper expanded his stake threefold, jumping from 500,000 shares to 1.5 million. The memory chip manufacturer has completely sold out its production capacity for the entire year, driven by overwhelming demand from AI data center operations. Micron’s Q4 financial results showed revenue of $13.64 billion with earnings per share of $4.78, surpassing analyst projections.
Micron and Meta: Two Very Different Bets
Micron stock has skyrocketed 348% over the trailing twelve months and gained 35% year-to-date. The semiconductor manufacturer is committing $200 billion toward new manufacturing facilities, including two fabrication plants in Idaho valued at $50 billion combined and an additional factory near New York representing a $100 billion investment.
Tepper grew his Meta holdings by 62% during Q4, though this particular investment has underperformed. The social media giant reported Q4 revenue of $59.89 billion with earnings per share of $8.88, exceeding consensus estimates. Nevertheless, the stock experienced significant selling pressure following Q3 earnings due to worries surrounding artificial intelligence expenditures.
Meta has projected $115 to $135 billion in AI infrastructure capital spending for 2026. Advertising accounted for $58.1 billion of its Q4 revenue total. The stock remains below its previous peak and has failed to mount a meaningful recovery.
Taiwan Semiconductor represented another Q4 addition to the portfolio. The foundry produces the majority of advanced logic chips deployed in AI hardware, positioning it as a primary beneficiary of data center capital expenditures from leading technology companies.
Microsoft Trades at Historically Low Valuation
Microsoft experienced a modest 8% position increase from Tepper during the fourth quarter. The stock tumbled following its most recent earnings announcement and currently sits more than 25% below its all-time peak. The shares are now trading at a price-to-earnings multiple not witnessed in considerable time.
Appaloosa’s subsequent 13F disclosure, covering the first quarter of 2026, is expected approximately mid-May. That report will reveal whether Tepper continued accumulating Microsoft shares during the present quarter.
Alphabet shares are presently trading near $307. Micron is changing hands around $415. Meta is trading in the vicinity of $655.
