David Tepper cuts AI stock, yet value hits $1.1 billion

David Tepper entered the 2nd 4th with his hedge money sitting connected a monolithic involvement successful 1 of 2026's hottest representation stocks.

At the extremity of March, his Appaloosa portfolio held 1.67 cardinal shares worthy astir $562.5 million. Given its vulnerability to the booming request for AI representation and its tremendous tally this year, holding connected whitethorn person seemed similar the evident move.

Tepper did the opposite.

During Q2, Appaloosa sold 690,000 shares, cutting its involvement by astir 41%. That eye-catching simplification isn't wholly retired of quality for arguably 1 of the astir palmy money managers implicit the past 3 decades.

Surprisingly, though, contempt Tepper selling disconnected astir 50% of shares, the worth of what remained didn't shrink. It astir doubled.

By June 30, Appaloosa's remaining presumption was worthy $1.1 billion, which created 1 of the much strange-looking moves successful Tepper's latest portfolio.

David Tepper chopped Micron shares contempt the involvement reaching $1.1 cardinal Justin Edmonds/Getty Images

Tepper cuts Micron aft explosive run 

Tepper's Appaloosa axed a ton of Micron Technology (MU) shares from its portfolio successful Q2.

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Appaloosa sold 690,000 Micron shares, cutting its presumption 41%, from 1.665 cardinal shares to 975,000, according to a SEC filing. Interestingly, the worth of the involvement surged from $562.5 cardinal to $1.125 cardinal betwixt March 31 and June 30.

That dichotomy is explained by Micron's tremendous run.

Based connected Appaloosa's quarter-end filing values, Micron went from astir $338 per stock astatine March 31 to $1,154 astatine June 30, representing a whopping 242% increase.

Also, the rally intelligibly had a ton of cardinal support.

Micron's fiscal Q3 income surged to a grounds $41.46 billion, from $23.86 cardinal the anterior 4th and $9.30 cardinal a twelvemonth earlier. Adjusted EPS jumped to $25.11, portion adjusted gross borderline grew to 84.9%. Moreover, absorption guided fiscal Q4 gross to $50 billion, sailing supra Wall Street expectations.

Micron banal jumped different 17% to grounds highs pursuing those results, arsenic per Yahoo Finance.

AI representation request remains the superior driver.

Micron supplies high-bandwidth representation utilized with Nvidia accelerators, portion shortages of HBM and accepted DRAM person sharply raised prices. Moreover, the representation elephantine has secured $22 cardinal successful lawsuit commitments, portion remaining show obligations linked to strategical proviso agreements reached $100 billion.

Management expects choky representation conditions to enactment beyond 2027.