You may not notice, but today (February 14th) shows the deadline for what can be described as the most important data release for the first quarter.
Institutional investors with at least $100 million in assets under management (AUM) must file Form 13F with the Securities and Exchange Commission (SEC) within 45 calendar days of the end of the quarter. 13F will provide a snapshot of Wall Street’s most well-known money managers purchased and sold in the latest quarter (in this case the end of December quarter).
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However, not all institutional investors and billionaire asset managers will wait until the deadline files 13F with the SEC. On Monday, February 10th, billionaire David Tepper, who oversees nearly $6.5 billion at Appaloosa’s AUM, filed the 13th Fund of his fund.
Most investors will be hooked on Tepper’s continued buying cheap Chinese stocks, including JD.com, Alibaba Group and Baidu, but perhaps the biggest brow on Appaloosa’s 13F – The Tepper purchase nvidia (NASDAQ: NVDA) Stocks and sales of one of the top AI rivals.
David Tepper’s Appaloosa is boosting Nvidia’s shares
What really intriguing Appaloosa’s latest 13F is its rise in the purchase of 55,001 shares of Nvidia shares. This has resulted in an 8.8% increase in the fund’s shares since September 30th. This is the reversal of Wall Street selling Nvidia Stock, which it witnessed from Tepper. The first nine months of 2024.
Tepper’s renewed interest in the face of the AI revolution may have something to do with Nvidia’s dominant role in AI’s affiliate data centres. The company’s famous Hopper (H100) Graphic Processing Unit (GPU) and its successor, Blackwell GPU architecture, appears to be years ahead of the competition in terms of computing speed. Nvidia’s hardware is a clear top option as split-second decisions are particularly important for AI-driven software and systems.
The Tepper and Appaloosa teams may have been impressed with Nvidia’s ability to keep customers loyal to their ecosystem of products and services so far. Nvidia’s CUDA software platform is a toolkit used by Toolkit developers to make the most of NVIDIA GPUs and build large-scale language models. Without Cuda, Nvidia is not as successful as it is today.
It’s also not harmful that most of Wall Street’s most influential companies are buying large quantities of Nvidia GPUs. Microsoft, Meta Platforms, Amazon, and Alphabet are just some of Nvidia’s well-known clients.
However, this 55,001 share purchase is also a bit interesting given that Tepper has traditionally focused on deep value inventory. Nvidia has backed out of the peak price and sales (P/S) ratio that reached last summer last year, but the company’s current P/S ratio is nearly 30, far exceeding historic norms. , consistently has bubble territory for previous market-leading companies.
Companies that have led the innovation into the next big over the past 30 years to add have been checked in the past. Specifically, investors had the habit of overestimating the early adoption and usefulness of new technologies, which ultimately led to bubble bursting events. If an AI bubble forms and bursts, no company will be more directly affected than NVIDIA.
History has a perfect track record when it comes to early ramp-ups of game-changing innovation.
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Tepper sends 60% of his fund’s Intel interest to the Chopping Block
Meanwhile, Tepper was a busy bee when he ended up cutting Appaloosa’s stock in many well-known high-tech stocks in the fourth quarter. However, Tepper’s outstanding sales in the end-of-December quarter dumped 1.5 million shares (60% of his fund’s position) from chipmaker Intel. (NASDAQ: INTC).
Nvidia’s expansion of sales is nothing more than a textbook, but Intel’s downfall is a nightmare being created. Pivoting to enterprise GPUs and cloud computing is slow, and we have seen some of the data center’s central processing unit (CPU) market share, digging into by personal computers (PCs) and advanced microdevices.
Worse, Intel has spent a lot of money building Foundry Services from scratch. The company believes it could become the world’s second foundry by the turn of the decade, but the high costs of developing this segment from scratch have been heavier in Intel’s revenues.
It’s clear that Intel’s conversion efforts will take quite a bit of time, but this is an ideal example of deep value inventory that Tepper is normally bordered and not actively sold.
For example, even if it’s late, Intel should be a major beneficiary of the rise of AI. The company’s Gaudi AI chips offer an attractive price range when Nvidia’s pricing power passes through the roof. As AI-GPU rarity will naturally fade in future accommodations and companies get bored of waiting in large backlogs to receive hardware, Intel will be selling through AI-Ai-Accelerating chips There shouldn’t be any problem.
It is also worth noting that President Donald Trump took a protectionist approach to domestic AI intellectual property. With a big emphasis on promoting national security and US AI hegemony, Intel needs to get many opportunities to gain Nvidia monopoly (forgive the necessary puns) like GPU shares, and the next generation You should become a key player in your data center.
Additionally, it is possible that Intel is spinning its casting business into another entity. Spin-offs usually make business understanding easier and allow you to unlock shareholder value.
Finally, Intel stocks are historically inexpensive, with stocks trading at a 9% discount as of this writing on February 11th. He eventually regrets.
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John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development, Facebook spokeswoman and sister to Metaplatform CEO Mark Zuckerberg, is a member of Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of the board of directors of Motley Fool. Sean Williams holds roles for Alphabet, Amazon, Baidu, Intel, JD.com, and Meta Platforms. Motley Fool recommends advanced microdevice manufacturing, Alphabet, Amazon, Baidu, Intel, Meta Platforms, Microsoft, Nvidia, Oracle, and Taiwanese semiconductor manufacturing. Motley Fool recommends Alibaba Group and JD.com, and recommends the following options: A $395 call with Microsoft in January 2026, a short $27 call with Intel in February 2025, a short $405 call with Microsoft in January 2026. Motley Fools have a disclosure policy.
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