Tepper's Hedge Fund Dumps SanDisk, Pivots to AI Chip Stocks

Hedge fund Appaloosa Management, led by David Tepper, has made significant changes to its portfolio in the second quarter of 2026. One notable move was the complete liquidation of SanDisk shares, which had seen a 591% year-to-date rally and were valued at $179 million prior to the sale.

The funds from the SanDisk position have been redeployed into a concentrated bet on AI infrastructure and chip stocks. The largest disclosed holding is now Amazon, with Appaloosa owning over 5 million shares valued at over $1.19 billion.

Tepper's fund has also increased its positions in Taiwan Semiconductor Manufacturing and Nvidia, both key players in the AI chip supply chain. A new position was initiated in CoreWeave, an AI cloud computing company building out GPU-dense data centers.

Appaloosa did not stop at chips and cloud, however, with a new position also opened in SpaceX valued at approximately $38.5 million. The fund has trimmed its Micron Technology stake but still holds a substantial position valued at around $1.125 billion.