David Tepper's Appaloosa Management cut its Micron Technology stake by 41% in Q2 while opening a $107.3 million CoreWeave position and boosting Amazon to its largest holding. The fund also expanded bets on power producers Vistra and NRG Energy as data center electricity demand accelerates.
Appaloosa cut its Micron stake 41% in Q2 while opening a $107.3 million CoreWeave position, its 13F filing shows.
"Tight memory supply could extend Micron's earnings cycle," Adam Parker, founder of Trivariate Research, said, projecting the company's free cash flow could approach $300 billion over two years.
The fund sold 690,000 Micron shares, leaving 975,000 worth $1.125 billion — nearly double the $562.5 million position at the end of Q1 — as the stock surged 242% during the quarter. Appaloosa also exited SanDisk entirely after a 591% gain and trimmed AMD and Qualcomm positions.
The reallocation shifts capital from memory-chip makers exposed to pricing cycles toward AI infrastructure and power generation. Amazon became the fund's largest holding at $1.19 billion, with new stakes in CoreWeave, Broadcom, and Apple put options covering 835,000 shares.
Appaloosa added 680,000 Amazon shares, lifting the position 16% to 5 million shares worth approximately $1.19 billion. The fund also increased Taiwan Semiconductor by 24% to 1.65 million shares worth $788 million, added 238,500 Meta shares for a 55% increase to $380.2 million, and raised its Alphabet stake to $653.7 million.
The CoreWeave position broadens exposure beyond chip design into the computing backbone that runs generative AI workloads. CoreWeave, one of the largest GPU cloud providers, has secured a reported $104 billion revenue backlog.
The fund's power-generation wager expanded as well. Appaloosa added 192,940 Vistra shares to reach $351.4 million and increased NRG Energy to $257 million. Vistra trades at roughly 16 times forward earnings and NRG at 14 times, compared with about 25 times for TSMC and 63 times for fabless chip designers.
The U.S. Department of Energy projects data centers could consume 12% of total U.S. electricity by 2028, up from roughly 4% today. Vistra recently formed Helix Digital Infrastructure with Nvidia, KKR, and the Kuwait Investment Authority to build data center capacity, while NRG committed $3.2 billion for a 1.2-gigawatt Texas facility.
Micron shares have pulled back nearly 16% since July, though analysts still project about 51% upside over the next year, according to LSEG data. The stock remains up 240% in 2026.
Appaloosa's total disclosed portfolio rose from $5.9 billion to approximately $7.7 billion across 27 positions, down from 31. The fund reduced Alibaba by 12%, exited JD.com, PDD Holdings, and the KWEB ETF, while increasing Baidu by 14%. New positions were initiated in Boeing, American Airlines, and Goodyear.
The 13F filing does not reveal trade timing or whether positions serve as hedges. Future filings will show whether Appaloosa builds on the CoreWeave position and whether the power-generation thesis gains traction as data center demand accelerates.
This article is for informational purposes only and does not constitute investment advice.
