David Tepper's Appaloosa fund rose 32% through the first half of the year, driven by concentrated bets on a few stocks, with about 40% of its public equity portfolio in three names per its latest 13-F filing. Amazon is its largest holding; Tepper doubled his stake in the first quarter and added in the second, while the article notes Amazon's free cash flow turned negative from heavy AWS spending and shares trade at 30 times forward earnings. Micron rose more than 300% in the first half and Tepper trimmed his stake by about 41% last quarter, but it remains a top holding as a severe supply shortage persists and equilibrium may not arrive until at least 2029. Taiwan Semiconductor, whose stake rose 61% over the year, trades at 25 times forward earnings.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
David Tepperinvestment trustsAmazonMicronTSMC
Open a keyword to see other news on the same topic.
Related news
- Micron Technology , Inc . $MU Stock Sold by Merrion Investment Management Co LLC
Merrion Investment Management Co LLC cut its stake in Micron Technology (NASDAQ:MU) by 51.2% in the third quarter, leaving it with 1,813 shares after selling 1,900. The position, worth $1,931,000 at quarter-end, made up 0.8% of the fund's portfolio and was its 22nd largest holding. MU fell 5.6% ($52.40) to $878.84 on Friday, with a market capitalization of $994.34 billion. Micron's latest quarter brought revenue of $54.23 billion, up 379.1% year over year, and EPS of $33.42 that beat analyst estimates. The article also notes an average analyst rating of "Moderate Buy" and a quarterly dividend of $0.15.
- 3D Chips (3D IC) - Global Strategic Business Report: 3D Chips Stack Up as AI Workloads Push the Market towards $45.2Bn
The report values 3D integrated circuits at $16.8bn in 2024, with the memory segment projected to reach $22.2bn by 2030 as data centres need denser, more energy-efficient chips. Growth is driven by cloud computing, data centres, AI and machine learning, along with demand for miniaturised consumer devices and heterogeneous integration. The memory segment is forecast to grow at a CAGR of 19.2% and LEDs at 18.2%. The US market was about $4.6bn in 2024, while China is forecast to grow at a CAGR of 16.6% to roughly $6.7bn by 2030. The analysis also covers tariff risks, supply chain shifts and 26 companies, and names TSMC, NVIDIA, Micron and Amkor among those in the competitive race.
- Better AI Chip Stock: Taiwan Semiconductor vs. Micron
The article argues Micron is the better AI chip stock compared with Taiwan Semiconductor Manufacturing, even though both are among the largest chip foundries by market cap. Micron makes memory chips with commodity-like pricing, while TSMC makes logic chips designed by companies such as Nvidia and AMD. Memory demand has outpaced supply and pushed prices sharply higher, and the shortage is expected to worsen in 2027 and 2028. Micron also has faster revenue growth and trades at 5.3 times forward earnings versus 24 for TSMC, a gap the author attributes to market doubts that the current memory demand wave will last. The author calls this valuation mismatch too large to ignore, while still considering TSMC a fantastic investment.
- Elon Musk Says Optimus Is Tesla's Most Important Product. These 3 Suppliers Get Paid Before Tesla Does.
Elon Musk has suggested Tesla's Optimus humanoid robot could become its most important product, but making it profitable will require heavy investment in computing power, memory and batteries. The article highlights three suppliers that could benefit before the robot reaches the market: TSMC, whose third-quarter revenue rose 41% to $46.72 billion and whose advanced chips of seven nanometers or smaller made up 79% of wafer revenue; Micron, which Musk thanked for a substantial memory allocation and which could see demand from humanoid robots; and Panasonic, a long-standing Tesla battery supplier, though a specific Optimus battery deal has not been publicly confirmed. The article notes that years of engineering and production remain before Optimus is available for commercial sale.
- Prediction: Amazon’s Next Chapter Could Be Its Most Important One Yet
The 24/7 Wall St. prediction sets a price target of $332.67 for AMZN, 30.4% above the current $255.20, and rates the stock a buy with 70% confidence. The thesis rests on AWS, which grew 37% last quarter, its fastest pace in 18 quarters, while Amazon plans to spend about $200B in 2026 on AI infrastructure, chips, robotics and satellites. Second-quarter revenue reached $200.61B, and GAAP EPS of $5.75 included a $53.4B pre-tax gain linked largely to Anthropic, while adjusted EPS was $1.88. The article flags cash burn: trailing free cash flow turned negative at about -$7.6B after second-quarter capex jumped 68.44% to $54.21B, and long-term debt rose to $119.1B from $65.6B. The bull case is $383.54 and the bear case is $285.79.
- Intel, CoreWeave, SpaceX, Tesla, Amazon, Cleveland-Cliffs, and More Stocks That Explain Today’s Market
Related markets
Latest news
- Saudi Arabia postpones big investor conference to 2027 as Iran-backed Houthis escalate attacks on kingdom
Saudi Arabia has postponed its major annual investor conference until 2027 as Iran-backed Houthi militants escalate missile and drone attacks on the kingdom. The Future Investment Initiative had been scheduled for Riyadh from October 26 to 29. The decision follows a Houthi attack on King Khalid International Airport in Riyadh on October 10, which left at least 12 people dead and more than 300 injured. Organizers said in an email that new dates will be announced soon.
- Russia fires mysterious weapon at Kyiv, shockwaves spread; President Putin appears in rare image, drawing global attention
On the night of 18 Oct, Russia launched a coordinated strike on multiple Ukrainian targets using ballistic missiles, cruise missiles and Geran UAVs, focused on Kyiv. According to TST, around 10 ballistic missiles of the Iskander-M, S-400 or KN-23 types may have been used in the first wave; an above-ground metro station on Kyiv's left bank was reported damaged, disrupting rail and metro services, and videos of blue flashes led observers to suspect a new weapon. In western Ukraine, a 330 kV transformer station near Kovel may have been targeted. Meanwhile, Putin, who rarely appears in military uniform, visited a command post and stressed establishing a “security zone” along the border; blogger Yuri Podolyaka argued Moscow no longer treats these areas as bargaining chips. Front-line correspondent Alexander Kots said the part of Donetsk still controlled by Ukraine is just over 2,700 km².
- Semiconductor Sell-Off: 5 Stocks to Buy on the Dip
The article attributes the semiconductor selloff to investor doubts about the durability of AI infrastructure spending, even as cloud companies report strong demand for AI chips. It highlights five stocks: Nvidia (forward P/E just above 13.5 on fiscal 2028 estimates), Broadcom (custom AI chips, with that revenue expected to quadruple to $230 billion over two years; forward P/E of 11), AMD (riding inference and agentic AI demand), Cerebras Systems (high risk-reward; the company claims 30 times the inference speed of GPUs) and TSMC (forward P/E of 18 on 2027 estimates).
- Tom Lee’s Bitmine Adds $30 Million in Ethereum as Buying Nears Its Finish Line
Bitmine bought another 12,535 ETH (about $30 million), lifting its holdings to 6,041,481 ETH, or 4.9% of supply and 99% of its 5% target. Chairman Tom Lee blamed the crypto selloff on a broad risk-off shift, including AI funding and safety worries, U.S.-Iran tensions, midterm jitters and rising bond yields, and called the dip a historically attractive risk-reward entry. Total holdings reached $15.1 billion as of Oct. 18, including 215 Bitcoin, $582 million in cash and marketable securities, and other investments. About 84% of its ETH (5,067,309 tokens) is staked via its MAVAN platform, with projected annualized revenue of roughly $309 million. The position is currently underwater on paper because much of it was bought at higher prices.
- Opinion: The Most Important Number in Taiwan Semiconductor's Earnings Report Was 68%
The author argues the most important figure in TSMC's Q3 report is 68%, the share of revenue from high-performance computing (HPC), which grew 22% from the prior quarter. Revenue reached $46.72 billion, up 41.2% year over year, net income rose 68.7%, and gross margin hit 66.4%. Processes at 7nm and below made up 79% of wafer revenue, with 3nm at 33% and 2nm at 8%. TSMC guided Q4 revenue to $52.3–54.3 billion and expects roughly 44% full-year growth in U.S. dollars. The author remains bullish, saying ongoing demand for advanced AI chips should keep profits rising.
- Why Meta's Q3 earnings could be a little hard to interpret
Meta is reporting its third-quarter earnings after the market closes Wednesday, and Yahoo Finance's Brian Sozzi says the report will be hard to interpret. Recent good news on Meta's AI products, including new models and an AI agent, may not appear directly in the results but will likely be discussed on the earnings call. The key uncertainty is how investors will react if Meta raises its capex outlook again: it could be seen as fueling those products, or as overspending on offerings not yet reflected in financials. Sozzi expects the market to give Meta the benefit of the doubt on higher capex, as long as the increase does not shock investors.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.