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Billionaire David Tepper Dumped Intel and Oracle in the Past Quarter, and Piled Into These AI Infrastructure Stocks

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Tepper’s recent choices indicate some of the most sustainable and high-potential opportunities in the AI ​​infrastructure space.

Appaloosa Management’s founder, David Tepper, has long been known for his impressive and consistent returns on Wall Street. The billionaire investor and prominent hedge fund manager has made a name for himself by investing in distressed debt and “deep-value” equities by taking stakes in companies whose debt or stock prices have been negatively affected by investors’ extreme fear of reinvestment.

With his exceptional investing instincts and ability to find opportunities during market stress, he has made billions in profits. Tepper’s trading in distressed bank stocks during the 2008 financial crisis has established him as the “master of contrarian investing”.

Therefore, it is not surprising that Appaloosa Management’s exit from the venture giants intel (INTC +7.92%, And Oracle (ORCL +1.81%, The third quarter has raised eyebrows. Instead, the fund has chosen a new niche in artificial intelligence (AI) infrastructure players advanced precision instruments (AMD +1.34%, and dramatically increased its stake NVIDIA (NVDA +2.10%,,

It appears that billionaire investors are taking advantage of fears over a potential AI bubble. Here’s what else we can learn from these steps.

Professional conversation with colleagues in office meeting.

Image Source: Getty Images.

Intel and Oracle sales

Like all investment managers overseeing portfolios over $100 million, Appaloosa files quarterly Form 13F with the U.S. Securities and Exchange Commission (SEC). Although these filings do not reveal Tepper’s actual investment logic or strategy, they do give investors a snapshot of the securities deposited or released at the end of the fiscal quarter.

Tepper has given no public explanation for his individual stock decisions. However, based on their overall investment strategy, we can guess their motives for leaving Intel and Oracle.

intel stock price
today’s change

,7.92,3.17

current price

,43.18

Although Intel has been working on its foundry-focused transformation over the past two years, the transformation has been slow and capital-intensive. The company has also lost market share to AMD in the data center and PC markets. Although Intel’s valuation is not expensive, it no longer appears to be in line with Tepper’s investment style. The veteran investor believes that without a solid growth catalyst the value of even a cheap company could continue to fall.

Appaloosa, on the other hand, may have prioritized profit-booking over Oracle, which has already seen a solid share-price appreciation due to exceptional demand for its cloud and AI database offerings. However, the stock has given back some of its gains amid concerns about future capital expenditure requirements, high debt and rich valuations.

So, while Oracle is not a bad investment, Tepper may have sold it to free up capital to pursue other higher-growth opportunities. His strategy of concentrated investment also matches this thesis.

Investing in AI infrastructure stocks

Tepper has built up a stake in AMD worth about $154 million, which is about 2% of Appaloosa Management’s total portfolio. With global semiconductor sales projected to reach $1 trillion by 2030 and AMD being the only major GPU supplier besides Nvidia in the AI ​​market, the company is well-positioned to grow rapidly in a market hungry for additional computing capacity.

Advanced Micro Devices Stock Quote
today’s change

,1.34,2.95

current price

,222.71

AMD is already seeing strong demand for its Mi300, Mi325 and Mi350 GPU series, as well as its server CPUs from hyperscalers and large enterprises. In the third quarter, the company’s data center revenue increased 22% year over year to $4.3 billion. Coupled with the impressive roadmap for its upcoming high-performance, cost-effective Mi400 GPU series, which includes a multi-year supply partnership with Oracle and OpenAI, Tepper seems even more confident about the long-term growth potential of this stock.

Tepper also added about 150,000 shares of Nvidia, which now accounts for about 4.8% of Appaloosa’s total portfolio. Nvidia remains the backbone of the ongoing AI infrastructure buildout, with data center revenue up 66% year over year to $51.2 billion in the third quarter (ending Oct. 26).

nvidia stock price
today’s change

,2.10,3.77

current price

,183.69

Management reiterated that Nvidia has already shipped orders worth $150 billion for Blackwell and Rubin systems, while the remaining $350 billion of orders are scheduled to be shipped by the end of calendar year 2026. The company’s recent deals with Humane and Anthropic, a subsidiary of Saudi Arabia’s Public Investment Fund, increase the company’s opportunity to more than $500 billion.

With the company well-positioned to capture a significant portion of the $3 trillion to $4 trillion annual AI infrastructure opportunity by 2030, it seems Tepper is willing to tolerate short-term volatility due to AI fears for substantial long-term gains.

What should investors do now?

Although investors may prefer not to copy Tepper’s trades, especially amid fears of a potential AI bubble, they may want to keep an eye on these stocks if they believe in the long-term AI story.

Both Nvidia and AMD are benefiting from the explosive demand for compute capacity. However, Nvidia is trading at 44.6 times earnings, while AMD is trading at 105.9 times earnings. Expensive valuations imply that some portion of future upside has already been locked in.

Therefore, it makes sense for retail investors to choose the dollar-cost averaging strategy and gradually build up substantial positions in these two AI stocks.



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