Billionaire David Tepper Trimmed Micron and Sold out of SanDisk. Here's the New AI Stocks He's Buying

Billionaire investor David Tepper and his firm, Appaloosa, are currently undergoing a significant reallocation of assets within the artificial intelligence and technology sectors. According to reports from 24/7 Wall St. and Benzinga, Tepper has trimmed his position in Micron and completely sold out of his holdings in SanDisk. This strategic shift indicates that Appaloosa is turning cautious regarding memory stocks. While exiting certain positions, Tepper is simultaneously loading up on Magnific. Yahoo Finance reports that this portfolio reset involved exiting a total of 12 different stocks, with five of those exits being described as the most surprising moves in the current shift. Coverage from multiple outlets emphasizes the specific nature of these trades.

Benzinga highlights the shift away from memory-related equities, while thestreet.com explicitly describes the move as a reset of Tepper's AI portfolio. TradingView reports that Tepper is becoming more selective regarding his investments in China. This selectivity is evidenced by a cut to his position in Alibaba and a simultaneous boost to his investment in Baidu. These movements suggest a targeted approach to the Chinese tech market rather than a broad withdrawal from the region's AI-adjacent companies. The context for these moves centers on the volatile nature of AI-related equities and the specialized role of memory stocks in the hardware supply chain. By trimming Micron and dumping SanDisk, Tepper is signaling a change in outlook for the companies that provide the physical storage and memory necessary for AI processing.

The decision to pivot toward Baidu while reducing exposure to Alibaba demonstrates a reallocation of capital within the Chinese sector, focusing on specific entities that Tepper likely views as more favorable under his new, more selective criteria for AI investments. Looking forward, market observers are monitoring the continued execution of this portfolio reset. Based on the facts provided by the coverage, the primary areas to watch are the remaining holdings in the memory sector and the scale of the new positions in Magnific and Baidu. Investors are tracking whether Appaloosa will continue to exit more of the 12 stocks mentioned by Yahoo Finance or if the current cuts to Alibaba and Micron represent the extent of the reduction in those specific categories. The shift toward a more selective China strategy remains a key point of interest for those following Tepper's institutional movements.