David Tepper's Appaloosa Divests Alibaba and Acquires Micron and Alphabet in Portfolio Reorganization
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 18 2026
0mins
Source: Barron's
- Hedge Fund Activity: Appaloosa, led by billionaire David Tepper, made significant changes to its tech portfolio in Q4 2025.
- Increased Investments: The fund increased its investments in Micron and Alphabet.
- Reduced Holdings: Appaloosa reduced its stakes in AMD, Alibaba, and Uber.
- Market Strategy: These adjustments reflect the fund's strategic approach to navigating the tech sector.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy AMD?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on AMD
Wall Street analysts forecast AMD stock price to fall
33 Analyst Rating
25 Buy
8 Hold
0 Sell
Strong Buy
Current: 547.260
Low
210.00
Averages
289.13
High
377.00
Current: 547.260
Low
210.00
Averages
289.13
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing and artificial intelligence (AI). Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes AI accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AMD Acquires MEXT to Enhance AI Technology
- Acquisition of MEXT: AMD's announcement of acquiring MEXT, a company specializing in AI-driven memory optimization technology, aims to address memory constraints faced by modern data centers, thereby enhancing performance and efficiency for AI and data-heavy workloads.
- Technological Advantage: MEXT's technology allows flash storage to behave more like DRAM, which not only helps customers deploy workloads more efficiently at a lower total cost but also strengthens AMD's competitive position in the AI and data center market.
- Positive Market Reaction: Following the acquisition announcement, AMD's stock surged over 6% to approximately $545.10, extending its strong rally for the week, indicating renewed investor confidence in the deal.
- Optimistic Analyst Ratings: Seeking Alpha's Quant rating stands at 4.99 (strong buy), while Wall Street analysts are even more bullish with a rating of 4.54, reflecting strong market optimism regarding AMD's future growth potential.
See More
U.S. Futures Edge Higher as Chip Stocks Rebound
- Fed Rate Decision: The market anticipates that the Federal Reserve will keep interest rates unchanged in the 3.50%-3.75% range during new Chair Kevin Warsh's first meeting, which may provide a degree of stability for investors amid inflation pressures from the Middle East conflict.
- Chip Stock Rebound: Shares of chipmakers such as Broadcom, Micron Technology, Advanced Micro Devices, and Intel rose between 1.8% and 3.8% in premarket trading, reflecting optimism in the tech sector that could further drive overall market recovery.
- Oil Price Fluctuations: Oil prices hovered near a three-month low due to hopes for a peace deal between the U.S. and Iran, which not only alleviates inflation concerns but may also support economic recovery, boosting investor confidence.
- Retail Sales Data Release: The May retail sales data set to be released at 8:30 a.m. ET on Wednesday will be a focal point for the market, potentially influencing the Fed's future policy direction and impacting stock market performance.
See More
Intel's Remarkable Comeback in the Semiconductor Industry
- Restoration of Technical Leadership: Under former engineer Pat Gelsinger's leadership, Intel has implemented a plan to regain its technical lead by transforming into a third-party foundry, successfully delivering on the 18A process node, thereby enhancing its competitiveness against industry leader TSMC.
- Significant Stock Price Recovery: Since 'Liberation Day' last April, Intel's stock price has surged from a low of $18.84 to around $130, representing a nearly sevenfold increase, with its market cap rising from approximately $82 billion to about $650 billion, indicating strong market recovery potential.
- Government Funding Support: Critical funding from the CHIPS Act and relationships with President Trump have provided essential support for Intel's costly upgrades, further promoting U.S. independence in critical chip manufacturing.
- Enhanced Market Competitiveness: Although Intel's comeback has not outpaced other companies in percentage terms, its revival in the CPU market and chip manufacturing is significantly meaningful for the overall competitiveness of the U.S., marking its re-emergence in the semiconductor industry.
See More
Cathie Wood's ARK Invest Sells More AMD Shares Amid Market Fluctuations
- AMD Share Reduction: Cathie Wood's ARK Invest sold another 23,844 shares of AMD on Tuesday, worth $13 million, bringing total sales to over $250 million since May, indicating a sustained bearish outlook on the stock.
- Sentiment Shift: The sentiment for the iShares Semiconductor ETF (SOXX) flipped from 'bullish' to 'bearish', reflecting a cautious investor stance towards the semiconductor sector, even as major chip stocks rebounded in premarket trading on Wednesday.
- Chip Stock Recovery: Despite sharp declines on Tuesday, Intel shares rose 5.3%, AMD gained 3.8%, and Broadcom increased by 2.3%, demonstrating market optimism driven by a potential U.S.-Iran peace deal.
- Fed Rate Decision Focus: Investors are turning their attention to the Federal Reserve's rate decision due at 2 PM ET, with economists expecting rates to remain unchanged in the 3.50%-3.75% range, which could influence future market movements.
See More
Intel's Stock Surges Sevenfold Amid Comeback Strategy
- Stock Surge: Since hitting a low of $18.84 in April last year, Intel's stock has surged to around $130, representing a nearly sevenfold increase, indicating the company's potential for recovery in the semiconductor industry.
- Technical Leadership: Under CEO Lip-Bu Tan, Intel successfully delivered the 18A process node, enhancing its competitive edge against industry leader TSMC, which has contributed to the stock's rise.
- Government Support: Funding from the CHIPS Act has provided critical financial backing for Intel's expensive upgrades, further solidifying its market position amid rising demand for CPUs in data centers.
- Market Competitiveness: Although Intel's comeback may not yield the highest returns, its revival in chip manufacturing is significant for the U.S. competitiveness and investors, marking a notable resurgence in the industry.
See More
Five AI Giants Rising in the Server CPU Market
- Market Growth Potential: According to Bofa Global Research, the total addressable market for server CPUs is projected to grow from $35 billion in 2025 to over $170 billion by 2030, indicating strong demand for AI infrastructure and future growth potential.
- AMD Performance Boost: In Q1 2026, AMD's data center revenue rose 57% year-over-year to $5.8 billion, driven by increased EPYC and Instinct shipments, with expectations for server CPU revenue to grow over 70% year-over-year in Q2, showcasing the company's strong performance in AI.
- Intel Product Launch: Intel's launch of the Core Ultra series and Xeon 6+ processors in 2026 aims to enhance performance for AI PCs and edge solutions, expected to increase the company's market share in the rapidly growing edge AI sector.
- NVIDIA Innovation Breakthrough: NVIDIA's new AI superchip, Vera Rubin, is expected to deliver 10 times the performance of its predecessor, with shipments planned for the second half of 2026, further solidifying its leadership position in the AI CPU market.
See More
AMD Acquires MEXT to Enhance AI Technology
- Acquisition of MEXT: AMD's announcement of acquiring MEXT, a company specializing in AI-driven memory optimization technology, aims to address memory constraints faced by modern data centers, thereby enhancing performance and efficiency for AI and data-heavy workloads.
- Technological Advantage: MEXT's technology allows flash storage to behave more like DRAM, which not only helps customers deploy workloads more efficiently at a lower total cost but also strengthens AMD's competitive position in the AI and data center market.
- Positive Market Reaction: Following the acquisition announcement, AMD's stock surged over 6% to approximately $545.10, extending its strong rally for the week, indicating renewed investor confidence in the deal.
- Optimistic Analyst Ratings: Seeking Alpha's Quant rating stands at 4.99 (strong buy), while Wall Street analysts are even more bullish with a rating of 4.54, reflecting strong market optimism regarding AMD's future growth potential.
See More
U.S. Futures Edge Higher as Chip Stocks Rebound
- Fed Rate Decision: The market anticipates that the Federal Reserve will keep interest rates unchanged in the 3.50%-3.75% range during new Chair Kevin Warsh's first meeting, which may provide a degree of stability for investors amid inflation pressures from the Middle East conflict.
- Chip Stock Rebound: Shares of chipmakers such as Broadcom, Micron Technology, Advanced Micro Devices, and Intel rose between 1.8% and 3.8% in premarket trading, reflecting optimism in the tech sector that could further drive overall market recovery.
- Oil Price Fluctuations: Oil prices hovered near a three-month low due to hopes for a peace deal between the U.S. and Iran, which not only alleviates inflation concerns but may also support economic recovery, boosting investor confidence.
- Retail Sales Data Release: The May retail sales data set to be released at 8:30 a.m. ET on Wednesday will be a focal point for the market, potentially influencing the Fed's future policy direction and impacting stock market performance.
See More
Intel's Remarkable Comeback in the Semiconductor Industry
- Restoration of Technical Leadership: Under former engineer Pat Gelsinger's leadership, Intel has implemented a plan to regain its technical lead by transforming into a third-party foundry, successfully delivering on the 18A process node, thereby enhancing its competitiveness against industry leader TSMC.
- Significant Stock Price Recovery: Since 'Liberation Day' last April, Intel's stock price has surged from a low of $18.84 to around $130, representing a nearly sevenfold increase, with its market cap rising from approximately $82 billion to about $650 billion, indicating strong market recovery potential.
- Government Funding Support: Critical funding from the CHIPS Act and relationships with President Trump have provided essential support for Intel's costly upgrades, further promoting U.S. independence in critical chip manufacturing.
- Enhanced Market Competitiveness: Although Intel's comeback has not outpaced other companies in percentage terms, its revival in the CPU market and chip manufacturing is significantly meaningful for the overall competitiveness of the U.S., marking its re-emergence in the semiconductor industry.
See More
Cathie Wood's ARK Invest Sells More AMD Shares Amid Market Fluctuations
- AMD Share Reduction: Cathie Wood's ARK Invest sold another 23,844 shares of AMD on Tuesday, worth $13 million, bringing total sales to over $250 million since May, indicating a sustained bearish outlook on the stock.
- Sentiment Shift: The sentiment for the iShares Semiconductor ETF (SOXX) flipped from 'bullish' to 'bearish', reflecting a cautious investor stance towards the semiconductor sector, even as major chip stocks rebounded in premarket trading on Wednesday.
- Chip Stock Recovery: Despite sharp declines on Tuesday, Intel shares rose 5.3%, AMD gained 3.8%, and Broadcom increased by 2.3%, demonstrating market optimism driven by a potential U.S.-Iran peace deal.
- Fed Rate Decision Focus: Investors are turning their attention to the Federal Reserve's rate decision due at 2 PM ET, with economists expecting rates to remain unchanged in the 3.50%-3.75% range, which could influence future market movements.
See More
Intel's Stock Surges Sevenfold Amid Comeback Strategy
- Stock Surge: Since hitting a low of $18.84 in April last year, Intel's stock has surged to around $130, representing a nearly sevenfold increase, indicating the company's potential for recovery in the semiconductor industry.
- Technical Leadership: Under CEO Lip-Bu Tan, Intel successfully delivered the 18A process node, enhancing its competitive edge against industry leader TSMC, which has contributed to the stock's rise.
- Government Support: Funding from the CHIPS Act has provided critical financial backing for Intel's expensive upgrades, further solidifying its market position amid rising demand for CPUs in data centers.
- Market Competitiveness: Although Intel's comeback may not yield the highest returns, its revival in chip manufacturing is significant for the U.S. competitiveness and investors, marking a notable resurgence in the industry.
See More
Five AI Giants Rising in the Server CPU Market
- Market Growth Potential: According to Bofa Global Research, the total addressable market for server CPUs is projected to grow from $35 billion in 2025 to over $170 billion by 2030, indicating strong demand for AI infrastructure and future growth potential.
- AMD Performance Boost: In Q1 2026, AMD's data center revenue rose 57% year-over-year to $5.8 billion, driven by increased EPYC and Instinct shipments, with expectations for server CPU revenue to grow over 70% year-over-year in Q2, showcasing the company's strong performance in AI.
- Intel Product Launch: Intel's launch of the Core Ultra series and Xeon 6+ processors in 2026 aims to enhance performance for AI PCs and edge solutions, expected to increase the company's market share in the rapidly growing edge AI sector.
- NVIDIA Innovation Breakthrough: NVIDIA's new AI superchip, Vera Rubin, is expected to deliver 10 times the performance of its predecessor, with shipments planned for the second half of 2026, further solidifying its leadership position in the AI CPU market.
See More
