Billionaire David Tepper Has 40% of His Fund in Just 3 AI Stocks. Are They Still Buys?

Billionaire hedge fund manager David Tepper of Appaloosa Management has concentrated 40% of his portfolio into three major artificial intelligence holdings: Amazon, Micron Technology, and Taiwan Semiconductor Manufacturing Company (TSMC). Amazon serves as Tepper's largest holding, accounting for over 15% of the portfolio. The e-commerce and cloud powerhouse benefits from accelerating growth at Amazon Web Services (AWS), which maintains a massive $496 billion backlog and attractive two- to three-year payback periods on AI infrastructure investments. Micron represents Tepper's second-largest holding at more than 14% of the portfolio. The chipmaker is capitalizing on an extended high-bandwidth memory (HBM) supercycle and rising DRAM prices, while currently trading at an attractive forward price-to-earnings multiple of less than 6.5 times. TSMC comprises over 10% of Appaloosa's portfolio following a 24% position increase during the second quarter. The contract chip manufacturer retains a near-monopolistic positioning in advanced foundry production, positioning all three companies for sustained long-term tailwinds across the broader AI infrastructure expansion.