David Tepper allocates 40% of his $7.7B fund to just three AI stocks

David Tepper, the billionaire behind Appaloosa Management, has placed a staggering concentration bet on AI infrastructure. His fund’s Q2 2026 13F filing shows that roughly 40% of its $7.7 billion portfolio sits in just three stocks: Amazon, Micron Technology, and Taiwan Semiconductor Manufacturing. Inside the portfolio: chips, cloud, and memory Amazon claims the top spot at roughly 15.4% of total assets. Tepper holds 5 million shares valued at approximately $1.19 billion, making it the single largest line item across Appaloosa’s 27 positions. Micron Technology and Taiwan Semiconductor round out the trio. Micron manufactures the high-bandwidth memory chips that AI accelerators devour, while TSMC fabricates the advanced processors that power everything from Nvidia’s GPUs to Apple’s custom silicon. Together with Amazon, these three names account for about $3.1 billion of Appaloosa’s holdings. During Q2 2026, Tepper increased his stakes in both Amazon and TSM. Over three-quarters of Appaloosa’s portfolio is now linked to AI growth in some form. The fund also added Nvidia back to the portfolio after previously trimming that position. Earlier filings had shown a prior concentration of ab...