5 Shocking Moves: Why Billionaire David Tepper Dumped NVIDIA, AMD, And TSMC For These Contrarian Bets

As of December 2025, the investment world is still reeling from the massive portfolio shift executed by billionaire hedge fund manager David Tepper. His firm, Appaloosa Management, made a stunning, contrarian move by liquidating or drastically reducing its massive stakes in three of the world's most talked-about artificial intelligence (AI) stocks: NVIDIA, Advanced Micro Devices (AMD), and Taiwan Semiconductor Manufacturing Company (TSMC).

This aggressive profit-taking, revealed in the latest 13F filings for the first quarter of 2025, signals a clear skepticism about the current valuation of the high-flying GPU and semiconductor giants. Tepper, known for his aggressive, event-driven, and contrarian style, didn't just sell; he immediately redeployed the capital into a new set of surprising bets, including a different type of chipmaker and a massive new ETF position.

David Tepper: The Billionaire's Profile and Appaloosa's Strategy

David Tepper is one of the most successful and renowned hedge fund managers on Wall Street. His investment firm, Appaloosa Management, has a long history of generating exceptional returns, often by taking large, concentrated, and contrarian positions in distressed assets or undervalued companies. He is famously quoted as saying, "We are in the business of making money, not friends."

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• Full Name: David Alan Tepper
• Born: September 11, 1957 (Age 68 as of late 2025)
• Education: University of Pittsburgh (B.A. in Economics), Carnegie Mellon University (M.B.A.)
• Current Role: Founder and President of Appaloosa Management L.P.
• Net Worth: Estimated to be over $20 billion (as of late 2025)
• Other Ventures: Owner of the Carolina Panthers (NFL) and Charlotte FC (MLS).
• Investment Style: Contrarian, event-driven, value-oriented, with a focus on distressed debt and deep value equity.

Tepper’s recent moves are consistent with his strategy of aggressive profit-taking when he believes a stock's valuation has detached from its fundamentals or when a better, less-crowded opportunity arises. The decision to exit the AI chip leaders is a quintessential Tepper-style contrarian trade.

The Great AI Chip Exodus: Why Tepper Dumped NVIDIA, AMD, and TSMC

The 13F filings for the quarter ending March 31, 2025, showed a dramatic restructuring of Appaloosa's $8.38 billion portfolio. The sales were not minor adjustments but near-total liquidations of positions that had been central to the firm’s portfolio in the preceding year.

1. NVIDIA (NVDA): The Near-Total Liquidation

The most significant sale was in NVIDIA, the undisputed leader in AI GPUs. Appaloosa dumped a staggering 93% of its NVIDIA stake during the reporting period, taking massive profits off the table. This move suggests Tepper believes the stock's astronomical rise has already priced in years of future growth, leaving little room for further upside and exposing investors to significant valuation risk.

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2. Advanced Micro Devices (AMD): A Complete Exit

Appaloosa sold its entire stake in AMD, completely exiting the position between late 2024 and early 2025. AMD, a major competitor to NVIDIA in the data center AI chip market, was deemed to have reached a similar peak valuation. The complete exit indicates a lack of conviction in AMD’s ability to sustain its growth trajectory against the backdrop of intense competition and high market expectations.

3. Taiwan Semiconductor Manufacturing Co. (TSMC): Massive Reduction

Similarly, Appaloosa significantly reduced its holdings in TSMC, the world's largest contract chipmaker and the primary manufacturer for both NVIDIA and AMD. The move away from TSMC, a critical infrastructure play for the entire AI revolution, suggests a broader concern about the entire semiconductor supply chain's valuation, or perhaps geopolitical risk associated with the Taiwan-based company.

The Rationale: Valuation and Contrarianism. Tepper's strategy is often to buy when assets are cheap and sell when they are expensive. The sales of NVIDIA, AMD, and TSMC, which have seen their valuations soar, are a classic example of "taking chips off the table." He is betting against the crowded trade, suggesting that the "easy money" in the AI chip sector has already been made and that the market is now over-extending itself.

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Where the Billions Went: Tepper's New Contrarian Bets

Tepper didn't move to cash; he simply rotated capital into new, high-conviction ideas. The funds from the AI chip sales were swiftly deployed into a mix of different semiconductor plays, a major technology platform, and a surprising defensive ETF, demonstrating a calculated shift in risk exposure.

4. The New Chip Darling: Broadcom (AVGO) and Marvell Technology (MRVL)

Instead of the high-profile GPU makers, Tepper shifted his focus to other semiconductor giants. Appaloosa showed significant optimism on Broadcom (AVGO), a company that is a critical supplier for custom AI chips and networking solutions. This is a strategic move away from the highly competitive GPU space and towards the infrastructure and custom silicon market, which Tepper may view as a less-crowded, more stable growth area.

Furthermore, Tepper also disclosed a new stake in Marvell Technology (MRVL). Marvell is focused on data infrastructure, including cloud and 5G, providing a different angle on the technology boom that is less directly tied to the volatile GPU stock prices of NVIDIA and AMD. This shift indicates a belief in the broader, underlying infrastructure growth rather than just the front-end AI hardware.

5. The Tech Platform Play: Uber Technologies (UBER)

Another major destination for the redeployed capital was a significant increase in Appaloosa's position in Uber Technologies, Inc. (UBER). This move suggests a belief in the long-term potential of the mobility, delivery, and logistics platform, which has achieved profitability and continues to dominate its market. It represents a pivot toward a large-cap technology stock with a different valuation profile than the semiconductor sector.

6. The Defensive Hedge: SPDR S&P 500 Fossil Fuel Reserves Free ETF (SPYX)

Perhaps the most surprising new position was the establishment of a large stake in the SPDR S&P 500 Fossil Fuel Reserves Free ETF (SPYX). This ETF tracks the S&P 500 but excludes companies that own fossil fuel reserves. While seemingly a defensive, ESG-aligned play, its inclusion as the largest new position in Q1 2025 suggests Tepper is using it as a broad market hedge or a strategic allocation to a basket of stocks that may be poised to outperform in a carbon-conscious future, while also providing liquidity after the massive chip sales.

What This Means for the AI Market and Future Investors

David Tepper's decision to dump his core AI chip holdings is a powerful signal. It doesn't necessarily mean the AI revolution is over, but it strongly suggests that one of Wall Street's most successful contrarian investors believes the valuations for NVIDIA, AMD, and TSMC have peaked for the current cycle.

His shift towards Broadcom, Marvell Technology, and Uber highlights a rotation from pure-play AI hardware to underlying infrastructure and proven platform businesses. Investors following the "smart money" should view Tepper's latest 13F filing as a critical data point, indicating that the search for value and attractive risk-adjusted returns has moved beyond the initial, most crowded AI winners.

The move serves as a stark reminder that even in the hottest sectors, profit-taking and strategic capital rotation are essential components of successful long-term investing, especially for those who follow a strict contrarian discipline.