Billionaire Tepper's AI Portfolio Moves: What We Can Learn

Billionaire hedge fund manager David Tepper just made some bold moves in Q3 2025. His Appaloosa fund, which holds just 45 stocks, significantly upped its AI exposure by buying into three chipmakers.

The Big Three Bets:

First, Tepper went all-in on AMD, dropping $153.7M for 950k shares. This is a major play—his AMD purchase dwarfs his Nvidia increase, suggesting he believes AMD can actually chip away at Nvidia’s GPU dominance. The timing looks genius: AMD stock has surged nearly 70% since Q3 closed, boosted by their OpenAI partnership and aggressive growth targets (35%+ annual revenue growth planned).

Second, he loaded up on Baidu (the “Google of China”) with a 67.2% position increase. The stock has already jumped 30% post-Q3, and here’s the kicker—it’s still trading at a forward P/E below 16, way cheaper than U.S. AI mega-caps.

Third, Tepper went heavy on Qualcomm, tripling his stake with a 255.7% boost. While Qualcomm hasn’t popped as hard as AMD or Baidu yet (single-digit gains), its new AI accelerators for data centers and robotics could be a long-term winner competing directly with AMD and Nvidia.

The Takeaway: When billionaires move this decisively into AI chips, retail investors usually take notice. Tepper’s concentrated bets suggest AMD has the highest conviction—not because it’ll beat Nvidia, but because there’s plenty of room for multiple winners in the AI chip arms race.