David Tepper’s Appaloosa exits top AI stock while maintaining overweight in sector

Selling a stock that’s up 591% sounds like a problem most investors would love to have. David Tepper, whose Appaloosa Management runs a portfolio worth between $7.5 billion and $7.7 billion, recently made exactly that call, and the reasoning behind it says quite a bit about where smart money thinks the AI trade goes from here. In the second quarter of 2026, Appaloosa liquidated its full position in SanDisk, selling all 281,250 shares for roughly $179 million. The stock had peaked at $2,354.39 on June 22, making it the best-performing major AI-adjacent name of the year. Tepper didn’t hold on for more. He filed the exit in a 13F submission on August 14, confirming positions as of June 30. From memory chips to the full AI stack After trimming the position that had carried much of its first-half performance, Appaloosa moved aggressively into companies sitting closer to the core of AI infrastructure spending. Amazon became the fund’s largest single holding, with 5 million shares valued at approximately $1.19 billion, representing around 16% of the total portfolio. Appaloosa also expanded its existing stakes in TSMC and Nvidia while initiating new positions in Broadcom and CoreWeave. A n...