Tepper Bets Big on AI Growth With Large New Stakes in Oracle, Alibaba While Trimming Nvidia
• Billionaire investor David Tepper initiated a large position in Oracle stock in Q4 2022, making it Appaloosa Management's 12th-largest holding. He likely sees strong growth potential in Oracle's cloud infrastructure business.
• Tepper increased Appaloosa's stake in Alibaba by 21% in Q4. The low valuation and potential for a turnaround as the Chinese economy recovers may have attracted Tepper, although risks remain.
• Amazon is Appaloosa's 3rd-largest position. Tepper has held the stock since 2019 and likely remains bullish on Amazon Web Services' AI opportunities and the company's steady growth.
• Tepper cut Appaloosa's Nvidia stake by 23% in Q4 despite huge gains in 2022. He may be taking some profits off the table after the massive run-up.
• Tepper seems to be making big bets on AI stocks he sees as undervalued (Oracle, Alibaba) or poised to benefit from surging demand (Amazon).