Tepper Dumps Hot AI Stock Amid 3,000% Rally

Billionaire David Tepper's investment firm, Appaloosa, has revealed its portfolio for the second quarter of 2026 through a Form 13F filing. The firm's CEO, Tepper, is known for his expertise in artificial intelligence (AI) stocks and has a significant portion of his fund invested in this sector.

The majority of Appaloosa's holdings, around 77%, are tied to companies where AI plays a central role in their growth thesis. Top positions include Amazon, Taiwan Semiconductor, and Nvidia, with the latter being the infrastructure backbone of AI-accelerated data centers.

However, a notable exception is Sandisk, which Tepper had previously invested in but dumped entirely during the second quarter. This decision may seem counterintuitive given Sandisk's impressive 3,000% rally over the trailing year.

The likely reason for this move is profit-taking, as Tepper could have quadrupled or quintupled his initial investment by holding onto Sandisk shares. Furthermore, historically, memory and storage solutions are highly cyclical, with investors often selling when prices are low and buying when they're high.