TLDR
- Appaloosa Management under David Tepper expanded holdings in Alphabet, Micron, Meta, Taiwan Semiconductor, and Microsoft during Q4
- Micron holdings grew threefold to 1.5 million shares amid year-long memory chip sellout driven by AI demand
- Alphabet achieved a milestone with over $400B in yearly revenue, featuring 48% growth in Google Cloud
- Meta delivered Q4 revenue of $59.89B while announcing $115–$135B AI infrastructure investment plans
- Microsoft shares declined more than 25% from peak levels, reaching attractive historical valuation metrics
On February 17, billionaire investor David Tepper submitted his quarterly 13F filing, revealing Appaloosa Management’s portfolio adjustments throughout the fourth quarter. With a concentrated portfolio of 45 stocks, Tepper modified five positions within his top 10 holdings.
Appaloosa expanded its Alphabet holdings by 28.7%, purchasing an additional 399,431 shares to increase the position to roughly 8.1% of total assets. The tech giant achieved a historic milestone by reporting annual revenue exceeding $400 billion, while Google Cloud surged 48% year-over-year to reach $17.7 billion. Alphabet recently claimed the title of America’s most profitable company, surpassing both Apple and Microsoft.
The most dramatic portfolio adjustment involved Micron. Tepper expanded his holdings threefold, moving from 500,000 shares to 1.5 million. AI data center demand has created such strong appetite for the company’s memory chips that production capacity is fully allocated for the entire year. Micron delivered Q4 revenue of $13.64 billion alongside EPS of $4.78, surpassing analyst projections.
Micron and Meta: Two Very Different Bets
Micron stock has surged 348% over the trailing twelve months and gained 35% in the current year. The semiconductor manufacturer is deploying $200 billion toward new production facilities, encompassing two Idaho fabrication plants totaling $50 billion and a New York facility valued at $100 billion.
Tepper grew his Meta holdings by 62% during Q4, though this investment has underperformed. Meta announced Q4 revenue of $59.89 billion with EPS of $8.88, exceeding Wall Street expectations. The stock experienced significant pressure following Q3 results due to investor concerns regarding AI capital expenditure levels.
Meta has outlined plans for $115 to $135 billion in AI infrastructure investments throughout 2026. Advertising generated $58.1 billion of the company’s Q4 revenue. Shares remain below their peak levels and have yet to recover momentum.
Taiwan Semiconductor represented another Q4 portfolio addition. The foundry produces the majority of advanced logic chips powering AI hardware, positioning it as a primary beneficiary of data center buildouts by leading technology companies.
Microsoft Trades at Historically Low Valuation
Microsoft received a modest 8% position increase from Tepper during Q4. Shares declined substantially following the company’s most recent earnings announcement and currently trade more than 25% below their all-time peak. The stock’s price-to-earnings ratio has reached levels rarely observed in recent history.
Appaloosa’s subsequent 13F filing, documenting Q1 2026 activity, is expected around mid-May. That disclosure will reveal whether Tepper accumulated additional Microsoft shares during the ongoing quarter.
Alphabet stock currently trades near $307. Micron shares are priced around $415. Meta trades in the vicinity of $655.
