David Tepper of Appaloosa Management is already a big name in the hedge fund world. What makes Tepper stand head and shoulders above the crowd at a time like this, though, is his fund’s more recent track record of performance.
Indeed, Appaloosa has been making some really outstanding calls, specifically within the AI semi space, with the purchase of a big chunk of Micron (NASDAQ:MU | MU Price Prediction) shares in the fourth and final quarter of last year. The 13-F filings from Q4 2025 don’t quite reveal specifics as to when Tepper and Appaloosa bought that sizeable position. But, nonetheless, Tepper’s fund got a magnificent seat in the DRAM firm ahead of a more than 100% gain.
Any way you look at it, Tepper’s approach has translated really well in these earlier innings of the AI boom, perhaps far better than the other billionaire investment legends out there.
Appaloosa’s Micron bet deserves praise
Year to date, Micron stock is up around 122%. Even with the latest correction, the name has been a timely double. And while only time will tell what Appaloosa has done with its Micron position as of this current second quarter, I do think that the Micron trade (or maybe it’s a longer-term investment?) was worth a round of applause for its surgical precision.
More recently, Appaloosa added to its position slightly (by around 11%) in the first quarter of 2026. Given shares of Micron are up more than 55% in the past month, that top-up is already proving to be another winning move.
While the Q1 2026 moves might already be last quarter’s news, I do think that some of the big moves are more than worth investor attention, especially when it comes to the names that haven’t quite moved as much since the first quarter. In this piece, we’ll look at some of the other big names in the Appaloosa portfolio and determine whether they’re worthy additions for investors right here in the midpoint of the second quarter.
Amazon
Appaloosa reportedly nearly doubled its position in shares of Amazon (NASDAQ:AMZN). I think it’s a brilliant move that’s still highly relevant as of mid-May. Of course, given Tepper’s fund topped up the name in the first quarter, you probably won’t get as low a cost basis, with Amazon shares trading at just shy of $260 per share. Still, I think Amazon is one of the Magnificent Seven names that’s still underpriced relative to its physical AI moat and the warehouse automation opportunities to be had.
Let’s not forget about the firm’s position in the AI race and the potential to reaccelerate AWS growth. While AWS is quite heftier than its hyperscaler peers, with a loftier CapEx budget for the year, I do think that the keys to victory for Amazon lie in driving AI-driven efficiencies.
Indeed, Amazon is spending a lot on CapEx, perhaps too much for comfort. If the spending translates into significant efficiency gains in a year or more down the road, though, perhaps Amazon might be the Mag Seven name with the most earnings-acceleration power.
Uber
Uber (NYSE:UBER) was another sizeable buy made by Appaloosa in the first quarter of 2026. The ride-hailing leader has emerged as a hedge fund favorite in recent years, but with shares dragging their feet, now down just north of 25% from all-time highs, I do see the name as one of the most intriguing low-multiple bets in big tech. With a very promising technical setup (is that a reverse head-and-shoulders pattern that’s in the works?) and a very modest 18.3 times trailing P/E multiple, perhaps it’s not too late to catch a ride on Uber shares quite yet at more than $74 per share.
I think the autonomous vehicle (AV) gear shift is still being misunderstood by much of Wall Street. As the firm looks to become a hub for AVs, I do see a pathway towards even higher-margin growth. Any way you look at it, it’s becoming more apparent that Uber is a high-ROI AI winner rather than a firm that stands to get disrupted. In a climate where huge CapEx bills are being punished, I view Uber as one of the perfect names to own.
Now, I have no idea if Uber or Amazon will prove as timely as the Micron bet. But I do think the two names stand out as among the best relative value plays in all of tech. For those looking to pick their spots, I think Tepper’s recent bets are a fantastic place to start.
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