Appaloosa Management's Investment Shifts in 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy NVDA?
Source: seekingalpha
- AUM Fluctuation: Appaloosa Management reported an AUM of $6.93 billion at the end of 2025, slightly down from $6.46 billion in 2024, indicating challenges in the market environment and adjustments in investment strategies.
- Reduction in Major Tech Stocks: The fund decreased its stake in Alibaba (BABA) from 11.8 million shares to 5.14 million shares, alongside a 5% reduction in Alphabet (GOOG) and a 16% cut in Amazon (AMZN), reflecting a cautious stance towards these companies.
- Increased Holdings in Emerging Tech: Appaloosa raised its position in Meta (META) from 490,000 shares to 600,000 shares, in Nvidia (NVDA) from 680,000 shares to 1.7 million shares, and increased its stake in Taiwan Semiconductor Manufacturing Company (TSM) by over 300% to 1.13 million shares, indicating growing confidence in emerging tech sectors.
- New Investment Positions: The firm established a new position in American Airlines (AAL) worth $216.92 million and initiated investments in Whirlpool (WHR), RTX Corporation (RTX), and Micron Technology (MU), showcasing its implementation of a diversified investment strategy.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 184.970
Low
200.00
Averages
264.97
High
352.00
Current: 184.970
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
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.
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- Increased Capital Expenditures: Major tech companies plan to further increase capital expenditures in 2026, primarily for AI infrastructure, which will directly boost Nvidia's GPU sales and solidify its market dominance.
- Surge in Product Demand: CEO Jensen Huang noted that demand for the Blackwell platform data center products is “off the charts,” indicating rapid growth in market demand for Nvidia's AI computing products.
- Record of Exceeding Estimates: Nvidia has surpassed Wall Street's earnings expectations in 20 out of the last 22 quarters, demonstrating strong performance stability and management's clear visibility into future results, with expectations to continue this trend.
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Appaloosa Management's Investment Shifts in 2025
- AUM Fluctuation: Appaloosa Management reported an AUM of $6.93 billion at the end of 2025, slightly down from $6.46 billion in 2024, indicating challenges in the market environment and adjustments in investment strategies.
- Reduction in Major Tech Stocks: The fund decreased its stake in Alibaba (BABA) from 11.8 million shares to 5.14 million shares, alongside a 5% reduction in Alphabet (GOOG) and a 16% cut in Amazon (AMZN), reflecting a cautious stance towards these companies.
- Increased Holdings in Emerging Tech: Appaloosa raised its position in Meta (META) from 490,000 shares to 600,000 shares, in Nvidia (NVDA) from 680,000 shares to 1.7 million shares, and increased its stake in Taiwan Semiconductor Manufacturing Company (TSM) by over 300% to 1.13 million shares, indicating growing confidence in emerging tech sectors.
- New Investment Positions: The firm established a new position in American Airlines (AAL) worth $216.92 million and initiated investments in Whirlpool (WHR), RTX Corporation (RTX), and Micron Technology (MU), showcasing its implementation of a diversified investment strategy.
See More
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- Market Expectation Shifts: Traders estimate a roughly 50% chance of the Fed cutting rates in June, suggesting a shift in market expectations regarding future interest rate movements, which could influence investor decisions and market volatility.
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- Policy Support: The Indian government has announced a 400 billion Indian rupee ($4.4 billion) push for electronics manufacturing and a tax holiday for foreign cloud service companies using Indian data centers, aiming to attract more international firms to participate in local AI development.
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See More
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- Optimistic Earnings Forecast: Nvidia anticipates fourth-quarter revenue for fiscal 2026 to reach $65 billion, representing a 65% year-over-year growth, highlighting the company's strong demand in the AI chip market and its leadership position.
- Increased Capital Expenditures: Major tech companies plan to further increase capital expenditures in 2026, primarily for AI infrastructure, which will directly boost Nvidia's GPU sales and solidify its market dominance.
- Surge in Product Demand: CEO Jensen Huang noted that demand for the Blackwell platform data center products is “off the charts,” indicating rapid growth in market demand for Nvidia's AI computing products.
- Record of Exceeding Estimates: Nvidia has surpassed Wall Street's earnings expectations in 20 out of the last 22 quarters, demonstrating strong performance stability and management's clear visibility into future results, with expectations to continue this trend.
See More
SOFTBANK GROUP CORP SELLS OFF ITS SHAREHOLDING IN NVIDIA CORP - SEC FILING
SoftBank Group Corp's Decision: SoftBank Group Corp has decided to dissolve its share stake in Nvidia Corp, indicating a strategic shift in its investment portfolio.
SEC Filing: The dissolution of the stake was formally communicated through a filing with the Securities and Exchange Commission (SEC), highlighting regulatory compliance in the process.
See More
OpenAI CEO Highlights Remarkable Progress of Chinese Tech in AI
- Remarkable Progress: OpenAI CEO Sam Altman highlighted in a CNBC interview that China's advancements in artificial intelligence are 'remarkable,' particularly in the race against the U.S. to develop artificial general intelligence (AGI), showcasing strong technological capabilities.
- Competitive Frontier: Altman noted that while Chinese tech companies are nearing the frontier in some areas, they lag in others, indicating a potentially uneven development that could impact the global tech competition landscape.
- Societal Technology Rollout: As China accelerates the rollout of AI technologies across various societal sectors, Altman's comments underscore China's significance in the global tech ecosystem, which may attract more investment and collaboration opportunities.
- International Cooperation Potential: Altman's remarks not only reflect recognition of China's tech progress but may also lay the groundwork for future U.S.-China cooperation in AI, fostering technology sharing and innovation.
See More
Appaloosa Management's Investment Shifts in 2025
- AUM Fluctuation: Appaloosa Management reported an AUM of $6.93 billion at the end of 2025, slightly down from $6.46 billion in 2024, indicating challenges in the market environment and adjustments in investment strategies.
- Reduction in Major Tech Stocks: The fund decreased its stake in Alibaba (BABA) from 11.8 million shares to 5.14 million shares, alongside a 5% reduction in Alphabet (GOOG) and a 16% cut in Amazon (AMZN), reflecting a cautious stance towards these companies.
- Increased Holdings in Emerging Tech: Appaloosa raised its position in Meta (META) from 490,000 shares to 600,000 shares, in Nvidia (NVDA) from 680,000 shares to 1.7 million shares, and increased its stake in Taiwan Semiconductor Manufacturing Company (TSM) by over 300% to 1.13 million shares, indicating growing confidence in emerging tech sectors.
- New Investment Positions: The firm established a new position in American Airlines (AAL) worth $216.92 million and initiated investments in Whirlpool (WHR), RTX Corporation (RTX), and Micron Technology (MU), showcasing its implementation of a diversified investment strategy.
See More
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- Fed Policy Divisions: The minutes released on Wednesday indicate that most Federal Reserve officials agreed to hold interest rates steady at the January meeting, yet there were disagreements on the future monetary policy path, with some prioritizing labor market support over inflation control, potentially impacting future rate decisions.
- Market Expectation Shifts: Traders estimate a roughly 50% chance of the Fed cutting rates in June, suggesting a shift in market expectations regarding future interest rate movements, which could influence investor decisions and market volatility.
- AI Summit Highlights: At the AI Impact Summit in India, business leaders including OpenAI CEO Sam Altman and Alphabet CEO Sundar Pichai attended, with Adani announcing a $100 billion investment in AI data centers in India, showcasing a strong commitment to the AI sector.
- ECB Leadership Change: European Central Bank President Christine Lagarde plans to resign before her term ends in October 2027, allowing French President Emmanuel Macron to influence her successor, a move that has led to the Stoxx 600 index hitting a record high, reflecting market optimism about future policies.
See More
India's AI Industry Receives Major Investments
- Investment Commitment: Amazon and Microsoft have pledged to invest $50 billion in India's AI ecosystem, demonstrating confidence in the country's technological development while providing local businesses with the necessary funding to accelerate growth in the AI sector.
- Infrastructure Development: Blackstone's $600 million investment in Indian AI infrastructure startup Neysa highlights the importance of foreign capital in the Indian AI market, which is expected to drive innovation and application of related technologies.
- Policy Support: The Indian government has announced a 400 billion Indian rupee ($4.4 billion) push for electronics manufacturing and a tax holiday for foreign cloud service companies using Indian data centers, aiming to attract more international firms to participate in local AI development.
- Market Challenges: Despite significant investments and policy support, analysts point out that India still faces numerous challenges in the AI sector, including a lack of sufficient regulatory frameworks and capital infusion, which could hinder its competitiveness in the global market.
See More
