At Extreme Investor Network, we pride ourselves on providing unique and valuable insights into the world of investing. Today, we are excited to delve into the recent moves made by David Tepper’s hedge fund, Appaloosa Management, during the second quarter.
One of the most notable changes was the significant reduction in their stake in leading AI chipmaker Nvidia. Appaloosa Management slashed its position by over 84%, amounting to a staggering $379 million, bringing their total investment down to approximately $85 million. This move took place before a sell-off in Nvidia shares and the broader technology sector. Despite Nvidia’s impressive 37% rally in the second quarter, the stock has dipped over 4% since the start of the third quarter.
In addition to Nvidia, Appaloosa Management also adjusted their positions in other tech giants such as Amazon, Microsoft, Meta Platforms, and Alphabet. They reduced their stakes in these companies, with Amazon and Alphabet experiencing a 12% decline in the current quarter. Meanwhile, Microsoft has fallen by about 7%, while Meta Platforms has seen a 4.5% increase.
Tepper also made changes to his investments in semiconductor companies, reducing positions in Advanced Micro Devices, Qualcomm, and Intel. Notably, he slashed his Intel position by 26% before the company reported disappointing second-quarter earnings and cut its dividend. On the flip side, Tepper increased his stake in ASML Holding, indicating a strategic shift in the semiconductor industry.
Moreover, Appaloosa Management boosted its bets on ridesharing companies, significantly increasing its position in Lyft by 1,600% and raising its bet on Uber Technologies. Tepper also added to his position in JD.com, showcasing his confidence in the Chinese e-commerce giant. Furthermore, he increased his holdings in Chinese-focused ETFs, indicating a bullish outlook on the Chinese market.
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