Billionaire David Tepper's Appaloosa Management Returned 32% Through the First Half of the Year. Here Are His Top 3 Stocks.
Key PointsTepper maintains a highly concentrated portfolio of stocks, with a big focus on the AI trend.
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.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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