David Tepper Adjusts Portfolio Focus on AI Infrastructure
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 23 2026
0mins
Should l Buy GOOGL?
Source: Fool
- Portfolio Adjustment: David Tepper trimmed his stakes in Nvidia and AMD by over 10% and two-thirds respectively in Q4, indicating a cautious stance on the AI chip market while still keeping Nvidia as his seventh-largest position.
- Memory Market Bet: He tripled his position in Micron Technology, capitalizing on the current DRAM supercycle characterized by high demand and short supply, thereby enhancing potential returns from investments in AI infrastructure.
- Hyperscaler Investments: Tepper increased his stake in Alphabet by nearly 30%, making it his second-largest holding, benefiting from Alphabet's rapid growth in cloud computing and proprietary AI chips, which provide a competitive edge in the AI sector.
- Investments in Meta and Microsoft: He raised his holdings in Meta by over 60%, reflecting confidence in its AI-driven growth, while also increasing his investment in Microsoft, anticipating strong growth from Azure and its commitments with OpenAI over the coming years.
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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.
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.
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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.
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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
Brookfield Renewable's Green Energy Business Thrives Amid AI Demand
- Renewable Energy Growth: Brookfield Renewable operated 47 GW of renewable capacity by the end of 2025 and has over 200 GW of projects in development, indicating strong growth potential in the green energy market, with further expansion expected through long-term contracts with hyperscalers like Microsoft and Google.
- Financial Performance Outlook: Analysts project Brookfield's revenue and adjusted EBITDA to grow at CAGRs of 22% and 6% respectively from 2025 to 2028, reflecting its profitability and competitive edge in the green energy sector, with an enterprise value of $58.4 billion still appearing relatively cheap at 15 times this year's adjusted EBITDA.
- GE Vernova's Market Performance: Since its spin-off in 2024, GE Vernova's stock has surged nearly eightfold, with double-digit growth in its Power and Electrification orders in 2025 driven by the expansion of cloud and AI markets, highlighting its critical role in energy transition.
- Future Growth Potential: Analysts expect GE Vernova's revenue and adjusted EBITDA to increase at CAGRs of 15% and 55% from 2025 to 2028, and despite its enterprise value of $233 billion and a meager forward yield of 0.2%, its potential to meet future energy demands makes it a compelling investment for investors.
See More
OpenAI CEO Simo Takes Medical Leave Due to Health Issues
- Leadership Changes: OpenAI CEO Fidji Simo announced a significant medical leave due to a worsening neuroimmune condition, during which President Greg Brockman will oversee product management, potentially impacting the company's product development timeline.
- Health Challenges: In a memo, Simo revealed that her health has been particularly poor over the past month, and despite postponing medical tests to focus on work, she recognized the need for new interventions to stabilize her health, which may affect her long-term performance.
- Strategic Focus: An OpenAI spokesperson stated that despite the leadership changes, the company remains committed to advancing frontier research, expanding its global user base of nearly 1 billion, and powering enterprise use cases, demonstrating ongoing execution strength in key areas.
- Project Restructuring: Additionally, COO Brad Lightcap will transition to a new role focused on
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
Brookfield Renewable's Green Energy Business Thrives Amid AI Demand
- Renewable Energy Growth: Brookfield Renewable operated 47 GW of renewable capacity by the end of 2025 and has over 200 GW of projects in development, indicating strong growth potential in the green energy market, with further expansion expected through long-term contracts with hyperscalers like Microsoft and Google.
- Financial Performance Outlook: Analysts project Brookfield's revenue and adjusted EBITDA to grow at CAGRs of 22% and 6% respectively from 2025 to 2028, reflecting its profitability and competitive edge in the green energy sector, with an enterprise value of $58.4 billion still appearing relatively cheap at 15 times this year's adjusted EBITDA.
- GE Vernova's Market Performance: Since its spin-off in 2024, GE Vernova's stock has surged nearly eightfold, with double-digit growth in its Power and Electrification orders in 2025 driven by the expansion of cloud and AI markets, highlighting its critical role in energy transition.
- Future Growth Potential: Analysts expect GE Vernova's revenue and adjusted EBITDA to increase at CAGRs of 15% and 55% from 2025 to 2028, and despite its enterprise value of $233 billion and a meager forward yield of 0.2%, its potential to meet future energy demands makes it a compelling investment for investors.
See More
OpenAI CEO Simo Takes Medical Leave Due to Health Issues
- Leadership Changes: OpenAI CEO Fidji Simo announced a significant medical leave due to a worsening neuroimmune condition, during which President Greg Brockman will oversee product management, potentially impacting the company's product development timeline.
- Health Challenges: In a memo, Simo revealed that her health has been particularly poor over the past month, and despite postponing medical tests to focus on work, she recognized the need for new interventions to stabilize her health, which may affect her long-term performance.
- Strategic Focus: An OpenAI spokesperson stated that despite the leadership changes, the company remains committed to advancing frontier research, expanding its global user base of nearly 1 billion, and powering enterprise use cases, demonstrating ongoing execution strength in key areas.
- Project Restructuring: Additionally, COO Brad Lightcap will transition to a new role focused on
See More
