David Tepper's hedge fund slashed its position in leading AI chipmaker Nvidia during the second quarter and trimmed stakes in some of 2024's other leading technology names, according to securities filings. Appaloosa Management chopped its stake in the semiconductor company by more than 84%, or $379 million, to about $85 million. Nvidia had been the fund's fifth largest holding at the end of the first quarter .
The repositioning in Nvidia shares preceded a sell-off in the AI darling as well as the entire technology sector. The chip stock is down more than 4% since the start of the third quarter after an almost 37% rally in the second quarter. Nvidia has soared 138% this year.
The Florida-based hedge fund also lowered positions in "Magnificent 7" stocks Amazon , Microsoft , Meta Platforms and Alphabet in the latest quarter, and cut its stake in top holding Alibaba by about 7% to $756 million. Both Alphabet and Amazon have shed about 12% this quarter. Microsoft has fallen about 7%, while Meta is outperforming, rising 4.
5%. Tepper also switched up stakes in major semiconductor makers, cutting positions in Advanced Micro Devices and Qualcomm by at least 15% each. He slashed his Intel position by about 26% — before it reported disastrous second-quarter earnings and citting its dividend — and added about $7 million to a stake in ASML Holding .
Elsewhere, Tepper hiked his bets on ridesharing stocks, boosting his position in Lyft by 1,600% and increasing his bet on Uber Technologies. He also lifted a position in JD.com .
Tepper added to his KraneShares CSI China Internet ETF and iShares China Large-Cap ETF stakes..
