Billionaire David Tepper's Appaloosa Management Returned 32% Through the First Half of the Year. Here Are His Top 3 Stocks.
Tepper's highest-conviction investments could keep climbing higher.
David Tepper, a renowned hedge fund investor, saw his Appaloosa Management fund return 32% by the end of the first half of the year. Key to this performance are Tepper's concentrated investments in three stocks - Amazon (AMZN), Micron Technology (MU), and Taiwan Semiconductor Manufacturing (TSM).
Amazon, Tepper's largest holding at 5 million shares worth around $1.25 billion, has shown resilience in the competitive e-commerce and cloud computing market. Despite pushing free cash flow into negative territory due to heavy investments in compute capacity for its cloud division, Amazon's management maintains a positive outlook on returns on invested capital.
Micron Technology, known for its memory chips, also benefited from a severe global supply shortage in 2026, resulting in a more than 300% increase in stock value. Tepper reduced his stake in Micron by 41% last quarter, still holding it as one of his top investments.
Taiwan Semiconductor Manufacturing, the world's leading contract chip manufacturer, experienced a more than doubling in stock price. It is Tepper's largest holding in this group, benefiting from accelerating revenue growth driven by the AI sector. With a stock price trading at 25 times forward earnings, there's potential for further growth as TSMC continues to capitalize on its leading position in chip manufacturing technology.
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