Billionaire David Tepper Goes Big on Micron, Meta, and Alphabet in AI All-In

It’s 13F season when Wall Street funds release their holdings. One of the most widely followed 13F reports is David Tepper’s Appaloosa Management.

Tepper is one of the most successful hedge fund managers of all time, known for high-conviction bets at inflection points. His latest filing reveals a clear thesis: all-in on AI infrastructure. Tepper dramatically increased positions in Alphabet (NASDAQ:GOOGL | GOOGL Price Prediction), Micron Technology (NASDAQ:MU), and Meta Platforms (NASDAQ:META) while reducing Alibaba Group (NYSE:BABA) and Amazon (NASDAQ:AMZN).

Who Is David Tepper?

Tepper founded Appaloosa Management in 1993 and built one of the most impressive track records in hedge fund history. Known for bold, concentrated macro bets, his moves during the 2008 financial crisis cemented his reputation as a contrarian willing to bet big. When he shifts his portfolio this dramatically, it’s worth understanding why.

The Big Buys: Tepper’s AI Trio

Alphabet (GOOGL)

Tepper increased his Alphabet stake significantly. Previously Appaloosa held just under 1.4 million shares and now holds nearly 1.8 million. In total, the fund increased its Alphabet holdings by 29%.

Alphabet reported Q4 2025 revenue of $113.83 billion, with Google Cloud growing 48% year-over-year to $17.7 billion. CEO Sundar Pichai highlighted that “annual revenues exceeded $400 billion for the first time” and that “the launch of Gemini 3 was a major milestone.” Alphabet is guiding for $175-185 billion in CapEx for 2026, almost entirely focused on AI infrastructure. The stock trades at 28x trailing earnings with an analyst target of $373.

Micron Technology (MU)

Tepper’s most interesting buy might be Micron. The fund previously held 500,000 shares, but increased its Micron holdings to 1.5 million. That’s a massive 200% jump.

The buy is already paying off with Micron shares up 33% year to date, but it is another ‘contrarian’ move for Tepper. Most investors see Micron as overvalued on account of being in an industry that’s been historically very cyclical. Tepper’s bet makes clear he sees more upside into 2026.

Q1 FY2026 revenue of $13.64 billion beat estimates by $410 million, with non-GAAP EPS of $4.78 crushing the $4.07 consensus. CEO Sanjay Mehrotra said “Micron’s technology leadership, differentiated product portfolio, and strong operational execution position us as an essential AI enabler.” With data center CapEx expected to hit $700 billion in 2026 and memory chip shortages driving up to 45% of spending increases, Micron is the pure play on AI memory demand.

Meta Platforms (META)

Tepper increased his Meta stake as well, mirroring a similar move from Bill Ackman.

Meta reported Q4 2025 revenue of $59.89 billion and EPS of $8.88, beating the $8.39 estimate. The company is guiding for $115-135 billion in CapEx for 2026, focused on AI infrastructure. Meta is down 3% year-to-date, making Tepper’s buy notable — he’s betting the market is undervaluing Meta’s AI investments and advertising dominance.

The Sells: China and Cloud Concerns

Tepper reduced his Alibaba position as the Chinese e-commerce giant faces mounting challenges. Alibaba reported Q2 FY2026 net income of $2.90 billion, down 53% year-over-year, due to aggressive AI and quick-commerce investments. Pentagon scrutiny, regulatory risks, and margin compression from intense competition drove Tepper to rotate out of China exposure.

He also reduced Amazon, which is down 13% year-to-date. While AWS grew 20% to $33 billion in Q3 2025, Tepper appears to favor Alphabet’s cloud business, which is growing faster at 48%.

The Big Picture: An AI Infrastructure Bet

Tepper’s rotation tells a coherent story: out of China risk and into pure AI infrastructure. Alphabet brings AI search and cloud. Micron provides memory chips powering AI data centers. Meta offers AI-driven advertising. All three are spending tens of billions on AI CapEx, and Tepper is betting those investments will generate massive returns.