David Tepper dumps SanDisk after 591% rally, pivots Appaloosa into AI chip stocks

David Tepper’s hedge fund Appaloosa Management dumped every single share of SanDisk during the second quarter of 2026, cashing out of a position worth roughly $179 million at the prior quarter’s end, and redeployed the proceeds into a concentrated bet on AI infrastructure and the companies powering it. SanDisk stock had already ripped 591% year-to-date through mid-August, touching a peak of $2,354.39 on June 22. The 281,250-share position was liquidated entirely, according to Appaloosa’s 13F filing submitted on August 14. Where the money went Appaloosa’s reallocation reads like a shopping list for the AI arms race. Amazon became the fund’s largest disclosed holding after Tepper boosted it to 5 million shares, a position valued at over $1.19 billion. The fund also added to its positions in Taiwan Semiconductor Manufacturing and Nvidia, two companies that sit at the very center of the AI chip supply chain. Perhaps the most eyebrow-raising move was a new position in CoreWeave, the AI cloud computing company that has been aggressively building out GPU-dense data centers. Appaloosa initiated a stake of 1.078 million shares. Tepper didn’t stop at chips and cloud. The fund opened a 225,00...