David Tepper's Appaloosa Divests Alibaba and Acquires Micron and Alphabet in Portfolio Reorganization
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 7 hours ago
0mins
Should l Buy AMD?
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.
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Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise
33 Analyst Rating
25 Buy
8 Hold
0 Sell
Strong Buy
Current: 203.080
Low
210.00
Averages
289.13
High
377.00
Current: 203.080
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, graphics and visualization technologies. Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes artificial intelligence (AI) accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), smart network interface Cards (SmartNICs) 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, GPUs, 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+, and 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.
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- Margin Improvement: AMD anticipates a non-GAAP gross margin of 55% in the current quarter, up 2 percentage points from last year, primarily driven by the launch of its latest AI data center processors, reflecting successful positioning in high-margin product lines.
- Market Reaction Analysis: Although AMD's earnings and outlook exceeded Wall Street expectations, the stock fell 4.8% as investors took profits, creating an opportunity for new investors to enter at a relatively attractive valuation with a current P/E ratio of 31, indicating potential investment value.
- Future Growth Potential: Analysts forecast a 60% increase in AMD's earnings for both 2026 and 2027, significantly above the S&P 500 average, and if AMD trades at 22 times earnings in three years, its stock price could reach $309, representing a 51% increase from current levels, showcasing strong long-term growth potential.
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- 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.
See More
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- Strong Quarterly Performance: Despite a more than 17% drop in AMD's stock following its Q4 2025 earnings report, the company achieved impressive revenue and earnings growth, projecting a 32% year-over-year increase in Q2 2026 to $9.8 billion, indicating robust market demand and business resilience.
- Margin Improvement: AMD anticipates a non-GAAP gross margin of 55% in the current quarter, up 2 percentage points from last year, primarily driven by the launch of its latest AI data center processors, reflecting successful positioning in high-margin product lines.
- Market Reaction Analysis: Although AMD's earnings and outlook exceeded Wall Street expectations, the stock fell 4.8% as investors took profits, creating an opportunity for new investors to enter at a relatively attractive valuation with a current P/E ratio of 31, indicating potential investment value.
- Future Growth Potential: Analysts forecast a 60% increase in AMD's earnings for both 2026 and 2027, significantly above the S&P 500 average, and if AMD trades at 22 times earnings in three years, its stock price could reach $309, representing a 51% increase from current levels, showcasing strong long-term growth potential.
See More
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- Strategic Entry of India: India's formal entry into the U.S.-led Pax Silica initiative marks a significant victory for Washington in the global semiconductor and AI infrastructure supply chain competition, expected to enhance U.S. influence in the technology market.
- Multinational Cooperation Framework: The Pax Silica initiative includes core members such as Japan, South Korea, Singapore, the Netherlands, Israel, the UK, Australia, Qatar, and the UAE, with India's participation further solidifying this multinational cooperation framework to promote technology sharing and supply chain security.
- Diplomacy Meets Business: The U.S. State Department's launch of the AI chip
See More
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- Share Acquisition: On February 17, 2026, Cantor Fitzgerald disclosed to the SEC the acquisition of an additional 3,333,423 shares of IREN, with an estimated transaction value of $171.96 million, indicating strong confidence in the company's future prospects.
- Market Value Increase: This acquisition led to a $124.65 million increase in IREN's quarter-end value, reflecting the dual impact of new purchases and price changes, thereby solidifying Cantor Fitzgerald's investment strategy in the digital asset sector.
- Portfolio Adjustment: Following this transaction, IREN now represents 1.99% of Cantor Fitzgerald's 13F AUM, while the firm drastically reduced its stake in CoreWeave by 86%, highlighting its focus on IREN's growth potential.
- Market Performance: As of February 17, 2026, IREN shares were priced at $40.97, up 215.9% year-over-year, significantly outperforming the S&P 500 by 203 percentage points, showcasing its robust performance in the data center and Bitcoin mining sectors.
See More
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- Share Acquisition Details: On February 17, 2026, Cantor Fitzgerald disclosed the acquisition of an additional 3,333,423 shares of IREN, with an estimated transaction value of $171.96 million based on the quarterly average price, indicating strong confidence in the company.
- Value Increase: The quarter-end value of IREN's position rose by $124.65 million, reflecting both new purchases and stock price movements, suggesting Cantor Fitzgerald's optimistic outlook on IREN's future growth.
- Market Position Analysis: With a market capitalization of $13.59 billion, IREN represents only 1.99% of Cantor Fitzgerald's 13F AUM, yet its growth potential has drawn investor interest, particularly given its dependency on a contract with Microsoft.
- Investment Strategy Shift: Cantor Fitzgerald significantly increased its investment in IREN while reducing its stake in CoreWeave during Q4, indicating a belief that IREN may offer higher return potential moving forward.
See More
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- Market Confidence Revived: Meta's commitment to invest billions in Nvidia chips not only provides a much-needed financial boost to Nvidia but also has the potential to reshape market perceptions of its technological advantages, thereby enhancing its stock performance.
- Competitive Landscape Shift: With Meta's investment, Nvidia is likely to regain investor attention, prompting a reassessment of its core position in the AI sector, especially in light of competitive threats from companies like Google.
- Product Portfolio Advantage: Meta plans to utilize not only Nvidia's GPUs but also deploy its CPUs independently, indicating the significant value of Nvidia's product portfolio in meeting Meta's growing computational demands.
- Long-Term Value Consideration: CEO Mark Zuckerberg emphasizes the importance of evaluating the
See More
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- 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.
See More
