David Tepper Cuts Micron Stake by 41% and Adds to TSMC Position
Billionaire David Tepper’s latest regulatory filing reveals a strategic pivot within his semiconductor bets, trimming a surging memory chip maker while aggressively accumulating shares in a foundational chip fabricator.
Appaloosa Management reduced its position in Micron Technology by 41 percent during the second quarter, selling 690,000 shares of the memory chip manufacturer. Concurrently, billionaire fund manager David Tepper purchased 322,500 additional shares of Taiwan Semiconductor Manufacturing, expanding that holding by 24 percent. These moves were detailed in the firm’s latest Form 13F regulatory filing.
Despite the significant reduction, Micron remains Appaloosa’s second-largest holding by market value. The trimming likely represents profit-taking after the stock more than tripled during the quarter, crossing the $1,200 per share threshold. Memory chip shares have surged roughly 1,300 percent since mid-2023, driven by intense demand for high-bandwidth memory used in artificial intelligence infrastructure.
The partial exit also highlights growing caution regarding the broader artificial intelligence trade. While current demand for advanced memory is heavily booked, historical technology cycles suggest that early-stage bubbles eventually correct. It may take years for enterprises to fully optimize their artificial intelligence solutions, leaving hardware suppliers vulnerable if the current spending boom stalls.
Tepper’s continued accumulation of Taiwan Semiconductor signals a preference for foundational manufacturing over specialized memory components. The fund added to its position in the chip fabrication leader for the sixth consecutive quarter. Tepper has previously described the company as a "fabulous" asset, reflecting his strategy of targeting firms at the core of the artificial intelligence supply chain.
The semiconductor adjustments were part of a wider portfolio restructuring for the hedge fund. Appaloosa completely exited a dozen positions during the June-ended quarter, including storage technology company Sandisk. The shifts underscore a disciplined approach to risk management as the fund navigates elevated valuations in the technology sector.
