David Tepper Adjusts Investment Portfolio in AI Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 23 2026
0mins
Should l Buy GOOGL?
Source: NASDAQ.COM
- Chip Stock Reductions: David Tepper trimmed his Nvidia (NVDA) stake by over 10% and slashed his AMD position by two-thirds in Q4, indicating a cautious stance on the AI chip market, even though Nvidia remains his seventh-largest holding.
- Increased Memory Investments: Tepper tripled his investment in Micron Technology (MU), capitalizing on the current DRAM supercycle characterized by high demand and supply shortages, thereby enhancing the resilience of his portfolio.
- Hyperscaler Investments: He increased his stake in Alphabet (GOOGL) by nearly 30%, making it his second-largest holding, benefiting from the rapid growth of Alphabet's cloud computing unit and the cost advantages of its proprietary AI chips, reflecting confidence in future growth.
- Investments in Meta and Microsoft: Tepper raised his position in Meta Platforms (META) by over 60% and increased Microsoft (MSFT) shares by 8%, with both companies excelling in AI, suggesting a strong outlook for revenue growth driven by AI infrastructure.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 297.390
Low
305.00
Averages
374.25
High
400.00
Current: 297.390
Low
305.00
Averages
374.25
High
400.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
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.
Google's TurboQuant Algorithm Triggers Memory Chip Market Volatility
- Algorithm Efficiency Boost: Google's TurboQuant algorithm reduces memory usage by at least 6x and speeds up processing by up to 8x without any accuracy loss, potentially decreasing memory demand by 83%.
- Market Reaction: Following this announcement, shares of memory chipmakers Micron Technology and Sandisk fell by 10% and 14%, respectively, as investors feared a significant drop in demand, although some experts caution that these fears may be overblown.
- Historical Insight: The Jevons Paradox suggests that increased efficiency can lower costs and ultimately increase demand; historical examples, such as improved fuel efficiency in cars leading to higher fuel consumption, indicate that memory chip demand may not decline as expected.
- Investment Opportunity: Despite the initial pullback in Micron and Sandisk stocks, analysts believe that the launch of TurboQuant will drive further AI adoption and strengthen demand for memory chips, with Mizuho analysts reiterating their outperform ratings, suggesting this is a buying opportunity.
See More
Google's Algorithm Causes Plunge in Micron and Sandisk Stocks
- Stock Plunge: Google's introduction of the TurboQuant algorithm led to a 10% drop in Micron and a 14% drop in Sandisk shares, as investors feared that the AI breakthrough would drastically reduce demand for memory chips, impacting future revenues.
- Historical Lessons: The Jevons Paradox suggests that increased efficiency in resource use can actually lead to higher demand; historically, coal consumption rose despite efficiency improvements, indicating a potential similar outcome for the memory chip market.
- Analyst Optimism: Mizuho analyst Vijay Rakesh reiterated his outperform ratings on Micron and Sandisk, arguing that the launch of TurboQuant will drive AI adoption and strengthen demand for memory chips, highlighting potential market opportunities.
- Positive Financial Outlook: Micron forecasts Q3 revenue of $33.5 billion, representing a 260% year-over-year growth, with gross margins expected to increase by 660 basis points to about 81%, indicating strong growth potential despite market skepticism.
See More
Comparing Growth of Nvidia and Alphabet's Cloud Computing
- Nvidia Revenue Surge: In Q4 of fiscal 2026, Nvidia's revenue soared 73% year-over-year to $68.1 billion, with the data center segment contributing $62.3 billion, reflecting strong demand from cloud providers for AI-capable GPUs, thereby solidifying its market leadership.
- Strong Google Cloud Performance: Alphabet's revenue rose 18% year-over-year to $113.8 billion in Q4, with cloud computing revenue surging 48% to $17.7 billion, indicating robust growth potential in the high-margin enterprise cloud market.
- Capital Expenditure Risks: Despite Nvidia's rapid growth, its business is heavily tied to customer capital expenditure cycles, and if cloud infrastructure budgets normalize or competition intensifies, it could face dual pressures on pricing and revenue growth, increasing investment risks.
- Diversified Revenue Advantage: In contrast, Alphabet's diversified revenue streams and stable cash flow position it well to maintain strong market performance even if AI infrastructure spending cools, with projected free cash flow of $73.3 billion in 2025 enhancing its long-term investment appeal.
See More
Analysis of AI Competition Between Nvidia and Alphabet
- Nvidia's Revenue Surge: Nvidia's revenue soared 73% year-over-year in Q4 of fiscal 2026, reaching $68.1 billion, with the data center segment contributing $62.3 billion, reflecting strong cloud demand; however, future hardware cycle risks could impact sustained growth.
- Strong Google Cloud Performance: Alphabet's revenue grew 18% year-over-year to $113.8 billion in Q4, with cloud computing revenue surging 48% to $17.7 billion, indicating ongoing expansion potential in high-margin sectors.
- Capital Expenditure Plans: Alphabet plans to invest $175 billion to $185 billion in capital expenditures in 2025, primarily for AI compute capacity and cloud demand, which may pose short-term risks but is expected to enhance market competitiveness in the long run.
- Investment Choice Analysis: While Nvidia shows faster growth, its 36 P/E ratio and uncertainty around hardware cycles introduce higher risks, whereas Alphabet, with a 27 P/E ratio and diversified revenue streams, presents a safer long-term investment option.
See More
Investment Opportunity Analysis for Micron Technology Stock
- Memory Price Surge: Micron Technology's stock has surged approximately 300% over the past year due to a bottleneck in memory chip supply, and despite a recent drop of over 20% from its all-time high, it remains a compelling buy for long-term investors.
- Google Algorithm Impact: Google's TurboQuant algorithm reduces memory requirements by six times, leading the market to mistakenly assume a decrease in memory chip demand; however, AI hyperscalers are likely to repurpose this memory for other applications, thus not alleviating the memory bottleneck.
- High-Bandwidth Memory Market Growth: Micron estimates the high-bandwidth memory market will reach $35 billion by 2025 and triple to $100 billion by 2028, yet the company can currently only fulfill 50% to 66% of its orders, indicating robust market demand.
- Future Revenue Expectations: Micron anticipates revenue of $33.5 billion next quarter, a significant increase from $23.9 billion in the previous quarter, and with a low forward P/E ratio of 6.2, it presents a strong investment opportunity in the AI sector during this market correction.
See More
Google's Breakthrough Affects Micron's Stock Price
- Memory Market Bottleneck: Despite Micron's (NASDAQ: MU) stock soaring approximately 300% over the past year, it recently fell over 20% due to concerns about memory demand following Google's introduction of the TurboQuant algorithm, highlighting ongoing worries in the AI sector.
- Algorithm Innovation Impact: Google's TurboQuant algorithm reduces memory requirements by six times; however, while the market anticipates a decrease in memory chip demand, AI hyperscalers may repurpose released memory for other applications, thus not alleviating the memory bottleneck.
- Market Demand Forecast: Micron estimates that the high-bandwidth memory market will reach $35 billion by 2025 and triple to $100 billion by 2028, yet the company currently meets only about 50% to 66% of its orders, indicating significant challenges in fulfilling market demand.
- Future Growth Potential: Micron expects revenue of $33.5 billion next quarter, a substantial increase from $23.9 billion in the previous quarter, and with a forward P/E ratio of just 6.2, it presents a compelling investment opportunity in the AI space, despite cautious market sentiment regarding its short-term performance.
See More
Google's TurboQuant Algorithm Triggers Memory Chip Market Volatility
- Algorithm Efficiency Boost: Google's TurboQuant algorithm reduces memory usage by at least 6x and speeds up processing by up to 8x without any accuracy loss, potentially decreasing memory demand by 83%.
- Market Reaction: Following this announcement, shares of memory chipmakers Micron Technology and Sandisk fell by 10% and 14%, respectively, as investors feared a significant drop in demand, although some experts caution that these fears may be overblown.
- Historical Insight: The Jevons Paradox suggests that increased efficiency can lower costs and ultimately increase demand; historical examples, such as improved fuel efficiency in cars leading to higher fuel consumption, indicate that memory chip demand may not decline as expected.
- Investment Opportunity: Despite the initial pullback in Micron and Sandisk stocks, analysts believe that the launch of TurboQuant will drive further AI adoption and strengthen demand for memory chips, with Mizuho analysts reiterating their outperform ratings, suggesting this is a buying opportunity.
See More
Google's Algorithm Causes Plunge in Micron and Sandisk Stocks
- Stock Plunge: Google's introduction of the TurboQuant algorithm led to a 10% drop in Micron and a 14% drop in Sandisk shares, as investors feared that the AI breakthrough would drastically reduce demand for memory chips, impacting future revenues.
- Historical Lessons: The Jevons Paradox suggests that increased efficiency in resource use can actually lead to higher demand; historically, coal consumption rose despite efficiency improvements, indicating a potential similar outcome for the memory chip market.
- Analyst Optimism: Mizuho analyst Vijay Rakesh reiterated his outperform ratings on Micron and Sandisk, arguing that the launch of TurboQuant will drive AI adoption and strengthen demand for memory chips, highlighting potential market opportunities.
- Positive Financial Outlook: Micron forecasts Q3 revenue of $33.5 billion, representing a 260% year-over-year growth, with gross margins expected to increase by 660 basis points to about 81%, indicating strong growth potential despite market skepticism.
See More
Comparing Growth of Nvidia and Alphabet's Cloud Computing
- Nvidia Revenue Surge: In Q4 of fiscal 2026, Nvidia's revenue soared 73% year-over-year to $68.1 billion, with the data center segment contributing $62.3 billion, reflecting strong demand from cloud providers for AI-capable GPUs, thereby solidifying its market leadership.
- Strong Google Cloud Performance: Alphabet's revenue rose 18% year-over-year to $113.8 billion in Q4, with cloud computing revenue surging 48% to $17.7 billion, indicating robust growth potential in the high-margin enterprise cloud market.
- Capital Expenditure Risks: Despite Nvidia's rapid growth, its business is heavily tied to customer capital expenditure cycles, and if cloud infrastructure budgets normalize or competition intensifies, it could face dual pressures on pricing and revenue growth, increasing investment risks.
- Diversified Revenue Advantage: In contrast, Alphabet's diversified revenue streams and stable cash flow position it well to maintain strong market performance even if AI infrastructure spending cools, with projected free cash flow of $73.3 billion in 2025 enhancing its long-term investment appeal.
See More
Analysis of AI Competition Between Nvidia and Alphabet
- Nvidia's Revenue Surge: Nvidia's revenue soared 73% year-over-year in Q4 of fiscal 2026, reaching $68.1 billion, with the data center segment contributing $62.3 billion, reflecting strong cloud demand; however, future hardware cycle risks could impact sustained growth.
- Strong Google Cloud Performance: Alphabet's revenue grew 18% year-over-year to $113.8 billion in Q4, with cloud computing revenue surging 48% to $17.7 billion, indicating ongoing expansion potential in high-margin sectors.
- Capital Expenditure Plans: Alphabet plans to invest $175 billion to $185 billion in capital expenditures in 2025, primarily for AI compute capacity and cloud demand, which may pose short-term risks but is expected to enhance market competitiveness in the long run.
- Investment Choice Analysis: While Nvidia shows faster growth, its 36 P/E ratio and uncertainty around hardware cycles introduce higher risks, whereas Alphabet, with a 27 P/E ratio and diversified revenue streams, presents a safer long-term investment option.
See More
Investment Opportunity Analysis for Micron Technology Stock
- Memory Price Surge: Micron Technology's stock has surged approximately 300% over the past year due to a bottleneck in memory chip supply, and despite a recent drop of over 20% from its all-time high, it remains a compelling buy for long-term investors.
- Google Algorithm Impact: Google's TurboQuant algorithm reduces memory requirements by six times, leading the market to mistakenly assume a decrease in memory chip demand; however, AI hyperscalers are likely to repurpose this memory for other applications, thus not alleviating the memory bottleneck.
- High-Bandwidth Memory Market Growth: Micron estimates the high-bandwidth memory market will reach $35 billion by 2025 and triple to $100 billion by 2028, yet the company can currently only fulfill 50% to 66% of its orders, indicating robust market demand.
- Future Revenue Expectations: Micron anticipates revenue of $33.5 billion next quarter, a significant increase from $23.9 billion in the previous quarter, and with a low forward P/E ratio of 6.2, it presents a strong investment opportunity in the AI sector during this market correction.
See More
Google's Breakthrough Affects Micron's Stock Price
- Memory Market Bottleneck: Despite Micron's (NASDAQ: MU) stock soaring approximately 300% over the past year, it recently fell over 20% due to concerns about memory demand following Google's introduction of the TurboQuant algorithm, highlighting ongoing worries in the AI sector.
- Algorithm Innovation Impact: Google's TurboQuant algorithm reduces memory requirements by six times; however, while the market anticipates a decrease in memory chip demand, AI hyperscalers may repurpose released memory for other applications, thus not alleviating the memory bottleneck.
- Market Demand Forecast: Micron estimates that the high-bandwidth memory market will reach $35 billion by 2025 and triple to $100 billion by 2028, yet the company currently meets only about 50% to 66% of its orders, indicating significant challenges in fulfilling market demand.
- Future Growth Potential: Micron expects revenue of $33.5 billion next quarter, a substantial increase from $23.9 billion in the previous quarter, and with a forward P/E ratio of just 6.2, it presents a compelling investment opportunity in the AI space, despite cautious market sentiment regarding its short-term performance.
See More
