Billionaire investor David Tepper has made headlines by tripling his stake in Micron Technology (MU), acquiring an additional 1 million shares during the fourth quarter, as revealed in his latest Form 13F filing. This move positions Micron as Appaloosa’s fourth-largest holding and underscores Tepper’s confidence in the company’s growth potential in the AI-driven data center market, where demand for high-bandwidth memory (HBM) is surging.
Micron’s strong pricing power, driven by limited supply and robust enterprise demand, has propelled its gross margin to 56%, significantly enhancing its profitability outlook. Despite shares quadrupling since August 2025, the stock remains attractively valued with a forward P/E ratio of just 9, suggesting further upside potential. In contrast, Tepper has significantly reduced his position in Alibaba (BABA), trimming his stake by 57% amid rising geopolitical tensions and shifting valuations.
For market professionals, Tepper’s strategic pivot highlights the growing importance of AI in tech investments and signals a potential shift in sentiment towards Chinese equities. For a deeper dive into Tepper’s investment strategy and its implications, I recommend checking out the full article.
Source: fool.com