Appaloosa Management's Strategic Shift: Trimming Memory Giant While Adding Boeing and Amazon
David Tepper (Trades, Portfolio), the founder of Appaloosa Management, recently submitted his 13F filing for the second quarter of 2026, revealing a series of strategic adjustments to his portfolio. Tepper, who earned an international reputation for producing some of the highest returns among Wall Street fund managers, specializes in distressed debt investing and opportunistic equity plays. His latest moves show a clear pattern of profit-taking in high-flying technology names while rotating capital into beaten-down industrial and consumer cyclical stocks. The most impactful transaction this quarter was the reduction of Micron Technology Inc MU, which had a -3.93% impact on the portfolio's overall value.
Summary of New Buys
David Tepper (Trades, Portfolio) added a total of 6 new stocks to his portfolio during the second quarter of 2026, signaling a fresh capital deployment strategy. The most significant addition was Boeing Co BA, with 800,000 shares acquired, accounting for 2.24% of the portfolio and a total value of $173.18 million. This move suggests Tepper sees value in the aerospace giant despite its recent operational challenges. The second largest addition was American Airlines Group Inc AAL, consisting of 7,500,000 shares, representing approximately 1.75% of the portfolio, with a total value of $135.53 million. The third largest addition was CoreWeave Inc CRWV, with 1,078,248 shares, accounting for 1.39% of the portfolio and a total value of $107.33 million, indicating interest in the AI infrastructure space.
Key Position Increases
David Tepper (Trades, Portfolio) also increased stakes in a total of 11 stocks, demonstrating confidence in certain existing holdings. The most notable increase was Amazon.com Inc AMZN, with an additional 680,000 shares, bringing the total to 5,000,000 shares. This adjustment represents a significant 15.74% increase in share count, a 2.1% impact on the current portfolio, and a total value of $1.19 billion. The second largest increase was Taiwan Semiconductor Manufacturing Co Ltd TSM, with an additional 322,500 shares, bringing the total to 1,650,000 shares. This adjustment represents a significant 24.29% increase in share count, with a total value of $787.99 million, underscoring Tepper's continued conviction in the semiconductor supply chain.
Summary of Sold Out Positions
David Tepper (Trades, Portfolio) completely exited 12 holdings in the second quarter of 2026, streamlining his portfolio and freeing up capital for new opportunities. SanDisk Corp SNDK was one notable exit, with Tepper selling all 281,250 shares, resulting in a -3.01% impact on the portfolio. Corning Inc GLW was another significant liquidation, with Tepper selling all 1,129,500 shares, causing a -2.59% impact on the portfolio. These exits suggest a strategic reallocation away from certain technology and materials names that may have reached their perceived fair value or no longer fit the fund's investment thesis.
Key Position Reductions
David Tepper (Trades, Portfolio) also reduced positions in 5 stocks, with the most significant changes reflecting profit-taking in high-performing assets. The largest reduction was Micron Technology Inc MU, with 690,000 shares sold, resulting in a -41.44% decrease in shares and a -3.93% impact on the portfolio. The stock traded at an average price of $743.35 during the quarter and has returned 25.23% over the past 3 months and 240.64% year-to-date, making this a classic "sell into strength" move. The second largest reduction was Alibaba Group Holding Ltd BABA, with 1,465,000 shares sold, resulting in a -42.28% reduction in shares and a -3.1% impact on the portfolio. The stock traded at an average price of $125.28 during the quarter and has returned -11.46% over the past 3 months and -14.76% year-to-date, suggesting a potential loss-cutting or risk-management decision.
Portfolio Overview
At the end of the second quarter of 2026, David Tepper (Trades, Portfolio)'s portfolio included 27 stocks, reflecting a more concentrated approach compared to previous quarters. The top holdings included 15.43% in Amazon.com Inc AMZN, 14.57% in Micron Technology Inc MU, 10.2% in Taiwan Semiconductor Manufacturing Co Ltd TSM, 8.46% in Alphabet Inc GOOG, and 7.19% in Uber Technologies Inc UBER.
The holdings are mainly concentrated in 6 of all 11 industries: Technology, Consumer Cyclical, Communication Services, Utilities, Industrials, and Energy. This sector diversification reflects Tepper's approach of balancing high-growth technology exposure with more defensive and cyclical value plays. The significant cash raised from the Micron and Alibaba reductions, combined with the new positions in Boeing and American Airlines, suggests Tepper is positioning for a potential rotation in market leadership, favoring names that could benefit from economic recovery and infrastructure spending.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
