In the second quarter of 2026, David Tepper's Appaloosa Management increased its concentration in mega-cap technology and artificial intelligence-related stocks. The fund boosted its stakes in top holdings like Amazon, Taiwan Semiconductor (TSM), and Meta Platforms. Amazon remained the firm's largest position, valued at $1.19 billion. This strategy of deepening investment in core AI infrastructure and platform companies came as Tepper took significant profits in the memory chip sector.
Notably, the fund initiated new positions in the airline and aerospace industries, buying 800,000 shares of Boeing (BA) and 7.5 million shares of American Airlines (AAL). These new cyclical bets marked a significant portfolio addition. Simultaneously, Appaloosa trimmed its holdings in several chipmakers, including a major 41% reduction in its Micron (MU) share count, despite the stock's massive price appreciation which kept it as the fund's second-largest holding by value. The firm also made a significant reduction to its Alibaba (BABA) stake.
The filing also revealed a number of significant exits, signaling a portfolio consolidation. Appaloosa completely sold its positions in memory company SanDisk (SNDK), PDD Holdings, and defense contractors L3Harris (LHX) and RTX. The moves reflect a rotation out of certain high-flying chip names and Chinese internet stocks while reallocating capital toward dominant U.S. technology platforms and a new, contrarian bet on an aviation industry turnaround.