Billionaire David Tepper’s Latest Portfolio Shake-Up: The Bold Bet That Could Reshape Wall Street

Hedge-fund billionaire David Tepper is doubling down on the artificial-intelligence boom, reshaping Appaloosa Management’s $6-plus billion equity portfolio around chipmakers and data-center suppliers that he believes will lead the next leg of market growth. Fresh filings for the June-to-August window show Tepper bought 1.45 million shares of Nvidia, lifted his stake in Taiwan Semiconductor Manufacturing Co. (TSMC), and added a brand-new position in Intel, while trimming or exiting several legacy holdings. The moves cement a thematic pivot that began late last year. Nvidia’s record data-center revenue and aggressive rollout of next-gen GPUs convinced Tepper that the stock could more than double its already $4 trillion market capitalization over the next half-decade, fund analysts say. Meanwhile, TSMC provides the advanced packaging that keeps Nvidia’s lead intact, and Intel’s foundry reboot offers what Tepper calls an “undervalued turnaround option” on U.S. semiconductor capacity. Appaloosa also liquidated a massive S&P 500 put position, signaling that Tepper sees less downside risk for broad equities after a summer correction. Instead, he re-allocated capital to what he describes as “trillion-dollar addressable markets” in AI infrastructure, advanced computing, and healthcare. Regulatory filings reveal boosted bets on UnitedHealth Group and Humana, a nod to the defensive growth qualities of managed-care providers as U.S. election rhetoric heats up. Tepper’s aggressive repositioning comes as the veteran investor—ranked by Forbes among the 100 richest Americans—looks to extend a 27% net return for Appaloosa in 2024, handily beating the S&P 500’s 19% gain. He has gradually returned outside capital, meaning most of the fund’s assets are now his own, giving him latitude to swing harder at high-conviction ideas. Beyond Wall Street, Tepper’s profile remains high as owner of the NFL’s Carolina Panthers and Major League Soccer’s Charlotte FC. While his sports franchises struggle on the field, the hedge-fund titan’s investment playbook is clearly on a winning streak. By stacking shares of Nvidia, TSMC, and Intel alongside healthcare stalwarts, Tepper is positioning Appaloosa to capture secular tailwinds in AI compute demand and aging-population healthcare spending—two themes he argues will power the market’s next bull phase. With the Federal Reserve signaling a potential pause on rate hikes and corporate earnings surprising to the upside, Tepper’s latest bets suggest he expects multiple expansion for quality growth names. Investors tracking the “Tepper trade” will now be watching the upcoming third-quarter earnings season for confirmation that AI chip orders remain robust and that managed-care margins are holding up amid policy uncertainty. For now, the data say the billionaire’s conviction in an AI-led rally is stronger than ever—and he’s backing it with billions.