David Tepper Trimmed Nvidia and AMD, but Doubled Down on This AI Stock

The article says David Tepper’s Appaloosa Management sharply rotated its AI exposure in the quarter ended March 31, 2026: it trimmed NVIDIA by about 13% and AMD by about 32%, while nearly doubling Amazon to make it the fund’s largest disclosed holding at roughly 15% of the portfolio. The bullish thesis centers on AWS, which reaccelerated to 28% year-over-year revenue growth in Q1 2026, the fastest pace in 15 quarters, alongside a 38% operating margin. Amazon also benefits from growing custom-chip and AI infrastructure efforts, including Trainium and other in-house silicon, while trading at a much lower earnings multiple than the chip names Tepper sold. The article frames Amazon as a cheaper hyperscaler way to own AI demand, though it notes heavy 2026 capex and some one-time earnings gains as risks.