Tepper's $7.5 Billion Bet: 16% of Portfolio Now Invested in Amazon

David Tepper's investment firm, Appaloosa Management, has a significant stake in Amazon (AMZN) stock. According to a recent 13-F filing with the Securities and Exchange Commission (SEC), Tepper has around 16% of his nearly $7.5 billion stock portfolio invested in Amazon. This makes Amazon the investor's highest-conviction bet on the AI growth trend.

In the second quarter, Appaloosa increased its position in Amazon by 680,000 shares, or just under 15.8%. During this time frame, the fund reduced its Micron position by 41.4% and exited its Sandisk position entirely. Tepper's fund also increased its positions in Alphabet (GOOGL) and Meta Platforms (FB) by 6.7% and 54.6%, respectively.

Since the end of Q2, Amazon shares have continued to climb following the company's latest quarterly earnings report on July 30. The market reacted positively to better-than-expected revenue growth numbers for Amazon Web Services (AWS), which reported 37% revenue growth in the quarter. This growth was driven by the AI infrastructure boom, and CEO Andy Jassy announced that Amazon would increase its 2026 capital expenditure budget from $200 billion to $220 billion.

Investors should be mindful of the potential impact on shares if the AI bubble were to burst. With a minority stake in AI start-up Anthropic, Amazon could get hammered back.