Tepper's $7.5B Portfolio Now 16% Amazon

Billionaire investor David Tepper's hedge fund, Appaloosa Management, has significantly increased its stake in Amazon stock. According to a recent SEC filing, Appaloosa now holds around 16% of its nearly $7.5 billion portfolio in Amazon shares.

This represents a 15.8% increase in Amazon holdings during the quarter ending June 30. Tepper's fund also reduced its position in Micron by 41.4% and exited its Sandisk stake entirely, while increasing positions in Alphabet and Meta Platforms by 6.7% and 54.6%, respectively.

The move suggests that Appaloosa is shifting its focus towards hyperscaler stocks, with Amazon remaining the investor's highest-conviction bet on AI growth. Since the end of Q2, Amazon shares have continued to climb following a strong quarterly earnings report from AWS, which saw 37% revenue growth.

A continued AI-driven growth resurgence for AWS could benefit investors who stay bullish on Amazon. However, there is also a risk that an 'AI bubble' bursting could negatively impact the stock's price.