David Tepper Trimmed Nvidia and AMD, but Doubled Down on This AI Stock - 24/7 Wall St.

David Tepper's Appaloosa Management significantly adjusted its portfolio at the end of Q1 2026, trimming NVIDIA by 13% and AMD by 32%, while substantially increasing its Amazon stake by about 2.14 mil... Read original →

Tepper’s pivot from NVIDIA/AMD to Amazon isn’t just profit-taking—it signals a structural shift toward cloud-native AI infrastructure. AWS’s Trainium and Graviton chips are decoupling AI workloads from discrete GPUs, reducing reliance on TSMC’s CoWoS packaging and DRAM suppliers like Micron. Amid tightening U.S.-EU export controls on AI accelerators, Amazon’s vertical integration offers superior supply chain resilience and lower compliance overhead than pure-play chipmakers. Expect NVIDIA to fast-track Grace-Hopper deployments and lock in cloud partnerships via GB200 systems, while AMD counters with aggressive MI300X pricing. Within 18 months, hyperscaler custom silicon will capture over 30% of AI training demand; GPU vendors failing to embed into cloud-native stacks risk valuation collapse.