In 2024, Appaloosa Management founder David Tepper said that he would remain cautious about adding to his position in Nvidia Corp. (NASDAQ:NVDA), saying uncertainty around AI demand, earnings and future growth makes the chipmaker difficult to value. However, nearly two years later, the hedge fund holds 1.525 million Nvidia shares.
Tepper said on CNBC’s “Squawk Box” that he remains hesitant to purchase more Nvidia shares despite considering the stock attractive. He said he sold more than 80% of the fund’s Nvidia position during the second quarter. Appaloosa held roughly $85 million in Nvidia stock at the end of June 2024.
“We sold a lot of our Nvidia. We thought [the stock] was too high at the time and would come down. Unfortunately, we didn’t buy it when it came back down,” Tepper said.
He questioned whether future AI models will generate enough demand and require sufficient computing power to support Nvidia’s projected expansion. “Do you have the next-generation models that can take their chip?” Tepper had asked.
Tepper also said he had little visibility into Nvidia’s earnings beyond 2025, saying he had ‘no idea’ what the picture would look like in 2026 and 2027. “I don’t believe my analysts, I don’t believe any analysts, I don’t trust myself,” he said,” Tepper said.
Referring to the conditions behind long-term growth projections, he said, “I’m not saying it won’t happen. I’m just not smart enough to know if they will.”
Tepper Boosts Nvidia, AI Infrastructure Bets
Subsequent portfolio disclosures indicate Tepper’s Nvidia caution did not amount to abandoning AI exposure. In October 2025, Tepper increased his stake by 483% with the purchase of 1.4 million shares.
By August 2026, Appaloosa Management had boosted stakes in Nvidia, Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM), Amazon.com Inc. (NASDAQ:AMZN) and Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG), according to the latest Form 13-F. His total Nvidia holdings stood at 1,525,000 shares worth $305.1 million at the end of the quarter.
The filing also showed Appaloosa’s newest AI-related position was CoreWeave Inc. (NASDAQ:CRWV), also backed by Nvidia, highlighting Tepper’s broader focus on infrastructure companies supporting AI development.
Price Action: On a year-to-date basis, NVDA stock surged 22.94%, as per Benzinga Pro. On Friday, Nvidia stock declined 0.52% to $229.28.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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