David Tepper’s hedge fund significantly reduced its holdings in leading AI chip maker Nvidia in the second quarter, as well as other major technology names due for 2024, according to securities filings. Appaloosa Management reduced its stake in the semiconductor company by more than 84%, or $379 million, to about $85 million. Nvidia was the fund’s fifth-largest holding at the end of the first quarter. The repositioning of Nvidia shares preceded a selloff in AI darlings and the technology sector as a whole. The chip stock has fallen more than 4% since the beginning of the third quarter after rising nearly 37% in the second quarter. Nvidia has soared 138% this year. The Florida-based hedge fund trimmed its holdings in “Magnificent Seven” stocks Amazon, Microsoft, Meta Platforms and Alphabet in the most recent quarter, and trimmed its top holding, Alibaba, by about 7% to $756 million. Alphabet and Amazon both fell about 12% this quarter. Microsoft fell about 7%, while Meta outperformed, rising 4.5%. Tepper also shuffled around the major semiconductor companies, reducing his stakes in Advanced Micro Devices and Qualcomm by at least 15% each. He cut his Intel stake by about 26%. He increased his ASML Holdings stake by about $7 million before the company reported dismal second-quarter earnings and cited dividends. Tepper also increased his investments in ride-sharing stocks, growing his Lyft stake by 1,600% and increasing his investment in Uber Technologies. He also increased his JD.com stake. Tepper added shares to the KraneShares CSI China Internet ETF and the iShares China Large-Cap ETF.
David Tepper’s Appaloosa cut its major Nvidia stake in the second quarter
By NvidiaDaily
