TLDR
- David Tepper’s hedge fund Appaloosa Management increased investments across five artificial intelligence technology stocks in Q4 2025
- The fund tripled its Micron Technology position to 1.5 million shares as the chipmaker reports memory supply sold out for the entire year
- Alphabet achieved historic $400 billion annual revenue with Google Cloud posting 48% growth year-over-year
- Meta platforms exceeded Q4 projections with $59.89B in revenue but faces market skepticism over its $115–$135B AI infrastructure spending plan
- Microsoft stock has tumbled over 25% from its peak, presenting historically attractive valuation levels
Billionaire investor David Tepper disclosed his hedge fund’s quarterly portfolio moves through a 13F filing submitted on February 17, showing significant adjustments at Appaloosa Management. Operating with a highly selective portfolio of just 45 stock positions, Tepper made strategic changes to five holdings among his top 10 largest investments throughout the quarter.
The hedge fund increased its Alphabet stake by 28.7% during the period, acquiring an additional 399,431 shares that elevated the position to roughly 8.1% of the fund’s total portfolio value. The technology behemoth achieved a historic milestone by surpassing $400 billion in annual revenue, fueled primarily by Google Cloud’s remarkable 48% year-over-year revenue surge to $17.7 billion. The company has recently overtaken Apple and Microsoft to become the nation’s most profitable enterprise.
The most substantial portfolio modification targeted Micron Technology, where Tepper tripled his investment from 500,000 shares to 1.5 million. This aggressive accumulation coincides with the memory chip manufacturer’s disclosure that its entire production capacity is pre-sold through year-end, propelled by surging demand from AI data center deployments. The company reported quarterly revenue of $13.64 billion with earnings per share reaching $4.78, both figures exceeding Wall Street expectations.
Micron and Meta: Two Very Different Bets
Micron stock has delivered extraordinary returns with a 348% surge over the trailing twelve months and maintains momentum with an additional 35% appreciation year-to-date. The semiconductor manufacturer is deploying $200 billion in capital for production facility expansion, encompassing two Idaho fabrication plants valued at $50 billion combined and an enormous $100 billion manufacturing complex in New York.
Tepper expanded his Meta stake by 62% throughout the fourth quarter, though this investment has lagged performance expectations. The social networking powerhouse delivered Q4 revenue of $59.89 billion with earnings per share of $8.88, surpassing analyst consensus. However, the stock retreated after Q3 results as market participants reacted to the company’s substantial capital spending commitments.
Meta has announced intentions to deploy between $115 billion and $135 billion toward AI infrastructure investments during 2026. Advertising-generated revenue contributed $58.1 billion to Q4’s total. The stock continues trading beneath previous highs without achieving a substantial rebound.
Taiwan Semiconductor Manufacturing Company emerged as another Q4 acquisition for Appaloosa’s portfolio. The semiconductor foundry fabricates the vast majority of cutting-edge logic chips that power artificial intelligence systems, establishing it as a primary beneficiary of ongoing infrastructure investments by major technology platforms.
Microsoft Trades at Historically Low Valuation
Microsoft saw an 8% position increase from Tepper during the fourth quarter. The enterprise software leader’s stock price retreated sharply after its latest quarterly earnings disclosure and currently trades more than 25% below record highs. The company’s price-to-earnings ratio has contracted to levels rarely witnessed in recent years.
Appaloosa’s next 13F filing, encompassing the first quarter of 2026, should arrive approximately mid-May. That disclosure will indicate whether Tepper has further accumulated Microsoft shares amid the ongoing market correction.
Alphabet shares are presently trading near $307. Micron is exchanging hands around the $415 mark. Meta stock is positioned at approximately $655.
