Key Takeaways
- Appaloosa Management, led by David Tepper, expanded positions in five major tech names: Alphabet, Micron, Meta, Taiwan Semiconductor, and Microsoft during Q4
- Micron holdings were tripled to 1.5 million shares amid sold-out memory chip inventory driven by AI demand
- Alphabet crossed the $400B annual revenue milestone for the first time, powered by Google Cloud’s 48% growth
- Meta delivered Q4 revenue of $59.89B but stock struggled on worries about AI infrastructure costs ranging from $115B to $135B
- Microsoft shares have declined more than 25% from peak levels, now trading at unusually attractive valuation multiples
When billionaire hedge fund manager David Tepper submitted his 13F filing on February 17, it revealed strategic portfolio adjustments made during the final quarter by Appaloosa Management. With a concentrated portfolio of only 45 equity positions, Tepper’s modifications to five of his largest ten holdings drew considerable attention.
Tepper expanded his Alphabet holdings by 28.7%, purchasing an additional 399,431 shares to elevate the position to roughly 8.1% of total assets. The tech giant posted annual revenue exceeding $400 billion for the first time in its history, with Google Cloud contributing $17.7 billion after surging 48% year-over-year. Alphabet recently claimed the title of America’s most profitable corporation, surpassing both Apple and Microsoft.
The most dramatic portfolio shift involved Micron, where Tepper increased his position threefold from 500,000 shares to 1.5 million. This aggressive accumulation comes as the semiconductor manufacturer reports complete sellout of memory chips for the entire year, driven by insatiable AI data center requirements. Micron delivered Q4 revenue of $13.64 billion alongside earnings per share of $4.78, exceeding Wall Street projections.
Contrasting Fortunes: Micron Soars While Meta Stumbles
Micron stock has skyrocketed 348% over the trailing twelve months and added another 35% year-to-date. The semiconductor producer is committing $200 billion toward facility expansion, encompassing two Idaho fabrication plants valued at $50 billion combined and a New York manufacturing complex representing a $100 billion investment.
Tepper boosted his Meta holdings by 62% during the quarter, though this bet has underperformed expectations. Meta posted Q4 revenue of $59.89 billion with earnings per share reaching $8.88, surpassing analyst forecasts. Nevertheless, shares plummeted following Q3 results as investors digested aggressive AI expenditure plans.
Meta has outlined plans to invest between $115 billion and $135 billion in AI infrastructure throughout 2026. Advertising accounted for $58.1 billion of its Q4 revenue total. The stock continues trading below its previous peak without meaningful recovery.
Taiwan Semiconductor represented another Q4 addition to Tepper’s portfolio. The foundry produces the majority of cutting-edge logic chips powering AI systems, positioning it as a primary beneficiary of massive data center capital allocation from technology leaders.
Microsoft’s Valuation Reaches Multi-Year Lows
Microsoft received a modest 8% position increase from Tepper in Q4. Following disappointing earnings results, the stock has tumbled sharply and currently sits more than 25% below its all-time peak. The current price-to-earnings ratio represents one of the most attractive valuations observed in recent years.
Appaloosa’s subsequent 13F disclosure, covering the first quarter of 2026, should arrive around mid-May. That report will reveal whether Tepper capitalized on Microsoft’s weakness by accumulating additional shares during the current period.
Alphabet shares are currently changing hands near $307. Micron is trading around the $415 level. Meta stock hovers near $655.
