Hedge fund manager David Tepper of Appaloosa Management has shown a cautious approach to investing in Nvidia Corp. (NVDA) despite holding a significant stake in the company. In 2024, Tepper expressed uncertainty about AI demand, earnings, and future growth, making Nvidia difficult to value. Nearly two years later, Appaloosa holds 1.525 million Nvidia shares, worth $305.1 million at the end of the quarter.
Tepper admitted on CNBC’s 'Squawk Box' that he remains hesitant to purchase more Nvidia shares, despite considering the stock attractive. He sold over 80% of the fund’s Nvidia position during the second quarter of 2024, citing high stock prices. 'We sold a lot of our Nvidia. We thought [the stock] was too high at the time and would come down. Unfortunately, we didn’t buy it when it came back down,' Tepper said.
Tepper questioned whether future AI models will generate enough demand and require sufficient computing power to support Nvidia’s projected expansion. He also expressed little visibility into Nvidia’s earnings beyond 2025, stating, 'I don’t believe my analysts, I don’t believe any analysts, I don’t trust myself.' He acknowledged that while long-term growth projections are possible, he is not confident in predicting them.
Despite his caution, Tepper did not abandon AI exposure. In October 2025, he increased his stake in Nvidia by 483%, purchasing 1.4 million shares. By August 2026, Appaloosa had also boosted stakes in Taiwan Semiconductor Manufacturing Co. Ltd. (TSM), Amazon.com Inc. (AMZN), and Alphabet Inc. (GOOGL GOOG). The fund’s newest AI-related position was CoreWeave Inc. (CRWV), highlighting Tepper’s focus on infrastructure companies supporting AI development.
On a year-to-date basis, NVDA stock surged 22.94%, as per Benzinga Pro. On Friday, Nvidia stock declined 0.52% to $229.28.