David Tepper's Appaloosa Management sold its entire SanDisk stake in the second quarter, cashing out after the stock's sharp run-up, and rotated the proceeds into Amazon, Nvidia, TSMC, and new positions in Broadcom and CoreWeave. The fund also trimmed Micron by 41% while keeping approximately 77% of its portfolio in AI-linked names.
Appaloosa exits SanDisk after a triple-digit run
Appaloosa liquidated its full position in SanDisk, selling all 281,250 shares for roughly $179 million. The stock had peaked at $2,354.39 on June 22, making it the best-performing major AI-adjacent name of the year. Tepper filed the exit in a 13F submission on August 14, confirming positions as of June 30.
Sandisk shares had rallied more than 3,000% over the trailing year as of Aug. 27, and Tepper made his initial purchase in the first quarter of 2027. He has shown he is not afraid to cash in his chips, with an average hold time of around three years. Memory and storage names are historically cyclical, and a mouthwatering single-digit forward price-to-earnings ratio has historically marked a point to sell rather than buy.
Proceeds rotate into Amazon, Nvidia and newer AI infrastructure names
After trimming the position that had carried much of its first-half performance, Appaloosa moved aggressively into companies closer to the core of AI infrastructure spending. Amazon became the fund's largest single holding, with 5 million shares valued at approximately $1.19 billion, around 16% of the total portfolio. The fund also expanded its existing stakes in TSMC and Nvidia while initiating new positions in Broadcom and CoreWeave, and a new stake in SpaceX appeared in the portfolio.
Micron was the one position Appaloosa pulled back meaningfully, trimming its holdings by 41% and cutting roughly 690,000 shares; the remaining stake is still valued at approximately $1.13 billion.
AI still dominates the portfolio
David Tepper closed out the June quarter with only 27 holdings. Even so, approximately 77% of the fund's invested assets are tied to companies where AI is central to the growth thesis, with Amazon, Taiwan Semiconductor and Nvidia now Appaloosa's first, third- and ninth-largest holdings, respectively. The rotation followed a strong stretch for the fund: Appaloosa reported a 32% return in the first six months of 2026, driven largely by its memory-chip exposure.
Sources: Motley Fool via Yahoo Finance, Crypto Briefing
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