David Tepper's Appaloosa Reduces Nvidia Investment

In a significant move, David Tepper's hedge fund, Appaloosa Management, has drastically reduced its investment in Nvidia, a leading AI chipmaker, by over 84% during the second quarter of 2024. The fund's stake in Nvidia was slashed from approximately $379 million to about $85 million, marking a notable shift as the semiconductor company had previously been one of the fund's top holdings. This decision came just before a broader sell-off in the technology sector, with Nvidia's stock experiencing a decline of more than 4% since the beginning of the third quarter, despite a remarkable 138% increase in value this year. In addition to Nvidia, Appaloosa Management also trimmed its positions in several other prominent technology stocks, including Amazon, Microsoft, Meta Platforms, and Alphabet, which are collectively referred to as the "Magnificent 7." The fund reduced its stake in Alibaba by approximately 7%, bringing its total investment to $756 million. Notably, both Alphabet and Amazon have seen their stock prices drop by about 12% this quarter, while Microsoft has decreased by around 7%. In contrast, Meta has shown resilience, with a 4.5% increase in its stock value. Tepper's strategy also involved reducing stakes in major semiconductor companies, cutting positions in Advanced Micro Devices and Qualcomm by at least 15% each, and slashing his Intel investment by about 26% prior to the company's disappointing earnings report. However, he did increase his investment in ASML Holding by $7 million. On a more optimistic note, Tepper has significantly boosted his investments in ridesharing companies, increasing his stake in Lyft by an astonishing 1,600% and also raising his position in Uber Technologies. Additionally, he expanded his investments in JD.com and increased his holdings in the KraneShares CSI China Internet ETF and iShares China Large-Cap ETF.