Billionaire Tepper's AI Bets: Two Stocks Support 15% of the Portfolio

Hedge fund Appaloosa Management's manager David Tepper's recent holdings have been exposed—he has made heavy bets on two AI-related stocks.

**Alibaba (12.4% share)**
Tepper began to buy on dips starting in Q2 2022, with an average purchase price of $80.87 per share, and now the stock price is $167, resulting in a floating profit of over 100%. This investment perfectly exemplifies the "buying the dip theory": at that time, Alibaba was mistakenly punished due to regulatory turmoil and negative news about major shareholders, causing the stock price to fall to $113. The turning point came from the AI sector - the cloud computing division exploded, collaborating with Nvidia and investing $5 billion to build data centers, attracting institutional interest. However, Tepper had already started to reduce his holdings in Q2 (selling 2.2 million shares), indicating that the price may have returned to a reasonable range.

**Intel (2.8% share)**
After liquidating his position in Q1, Tepper made a comeback in Q2 by purchasing 8 million shares at a cost of $21.25 per share, which has now doubled to $40. This chip giant was once a deep value trap—losing PC market share to AMD, lagging in AI chips, and suffering losses in its foundry business. After the new CEO took office, there were significant layoffs and cost-cutting measures, and the key was securing investments from the U.S. government and Nvidia to turn the tide. However, risks remain high, growth is weak, and whether the rebound can be sustained is still a question.

**Insight**: Tepper's strategy is clear - buy at the bottom during extreme pessimism and decisively arbitrage when opportunities arise. This round of operations has had a good success rate, but the market has already overreacted, so future performance is worth observing.