David Tepper Shifts Focus to AI Stocks Amid Market Changes

NEW YORK, NY — Billionaire investor David Tepper, founder of Appaloosa Management, has made noteworthy changes in his investment strategy concerning artificial intelligence (AI) stocks. As of December 2, 2025, Tepper’s fund reports a significant shift in its portfolio, including new positions in AI infrastructure firms.

In the third quarter of 2025, Tepper’s firm exited its investments in tech giants Intel and Oracle, redirecting those funds into Advanced Micro Devices (AMD) and increasing holdings in Nvidia. This shift underscores a strategic pivot to capitalize on the evolving AI market, despite concerns of an impending AI bubble.

Intel, which has been attempting to revamp its operations, has struggled to regain lost market share in data centers and PCs to competitors like AMD. The slow recovery process has led Tepper to reevaluate the attractiveness of Intel, underscoring his strategy of focusing on companies that are poised for growth.

Meanwhile, Oracle has seen substantial gains recently but faced challenges with rising costs and debt. Observers speculate that Tepper might have opted to lock in profits from Oracle’s recent surge to reinvest in higher-growth opportunities.

Appaloosa Management has taken nearly a $154 million stake in AMD, which is regarded as a key player in AI markets. AMD’s revenue in the third quarter surged 22% year-over-year, reflecting heightened demand for its GPU and server products.

Furthermore, Tepper’s investment in Nvidia, which now comprises about 4.8% of his portfolio, suggests a firm belief in the company’s capacity to lead in the AI infrastructure segment. Nvidia reported a remarkable 66% increase in data center revenue in its latest quarterly report.

Tepper has not publicly detailed his rationale for these stock moves, but market analysts suggest his strategy aligns with the potential long-term growth of AI technologies. With expectations that global semiconductor sales will hit $1 trillion by 2030, both AMD and Nvidia are well-positioned to benefit from this growth.

Investors will be watching Tepper’s next steps as the AI market continues to evolve and mature.