Billionaire David Tepper Tripled His Stake in Micron and Bought This Other AI Memory Play On Top of It

David Tepper's Appaloosa Management is chiefly composed of the portfolio manager's idiosyncratic wealthiness aft returning astir of its extracurricular superior to clients successful caller years. That means the moves successful its portfolio correspond what Tepper thinks are the champion opportunities for his returns, not what helium needs to bash to conscionable lawsuit expectations. That tin marque it 1 of the much invaluable funds to travel for retail investors trying to larn what the champion investors successful the satellite are doing.

During the 4th quarter, Tepper made a large stake connected Micron Technology (NASDAQ: MU), the artificial quality darling that's soared implicit the past fewer months. Tepper besides established a caller presumption successful different representation spot play that could involvement immoderate investors. Here's what you request to know.

Will AI make the world's archetypal trillionaire? Our squad conscionable released a study connected the 1 little-known company, called an "Indispensable Monopoly" providing the captious exertion Nvidia and Intel some need. Continue »

During the 4th quarter, Tepper added 1 cardinal shares of Micron to the portfolio, making the banal 1 of his largest positions. He besides bought telephone options representing different 250,000 shares of the semiconductor stock. The different AI representation spot concern Tepper made was 1.875 cardinal shares of the iShares MSCI South Korea ETF (NYSEMKT: EWY).

While this ETF tracks an scale of much than 80 stocks based successful the country, it's dominated by conscionable two. Samsung Electronics and SK Hynix relationship for implicit 48% of the full fund's value. Combined with Micron Technology, the 3 companies relationship for practically each of the representation spot accumulation successful the world.

Indeed, the performances of Samsung and SK Hynix person mostly dominated the returns of the ETF. Year to date, the fund's terms has moved up mostly successful enactment with Micron's. Both are up astir 50% connected the backmost of beardown net results and affirmative outlooks, fueled by the ongoing shortage successful representation chips, starring to higher pricing.

Tepper's accrued concern successful the representation chipmakers indicates a content that the existent request rhythm could widen beyond the market's existent expectations. That could pb to higher net for longer.

The iShares South Korea ETF presents an alternate mode for investors to bargain into the monolithic request rhythm for representation chips, but investors should beryllium alert that a cyclical downturn awaits, and they shouldn't overpay.

With some Micron and the iShares ETF climbing 50% already successful 2026, investors aren't getting successful astatine astir the aforesaid terms arsenic Tepper did. Still, if the request rhythm for representation chips is poised to widen good past the adjacent mates of years, it could beryllium worthy paying up for the stocks.