David Tepper Trimmed Nvidia and AMD, but Doubled Down on This AI Stock - Yahoo Finance

David Tepper's Appaloosa Management significantly adjusted its portfolio in Q1 2026, trimming NVIDIA and AMD while substantially increasing its Amazon stake. The move reflects a strategic rotation fro... Read original →

Tepper’s pivot from NVIDIA/AMD to Amazon signals a strategic recalibration: AI investment is shifting from raw compute hype to infrastructure economics. Technically, AWS’s Trainium and Graviton chips now form a vertically optimized stack that undercuts GPU-based inference pricing while locking in clients like Anthropic. Geopolitically, U.S. export controls on advanced semiconductors amplify supply chain costs for fabless players reliant on Taiwan, China foundries—whereas Amazon’s integrated model inherently mitigates such exposure. In response, NVIDIA may deepen cloud co-design (e.g., Grace-Hopper), while AMD could resort to aggressive pricing in edge AI. Over the next 18 months, capital will favor hyperscalers with full-stack control; standalone chipmakers face valuation compression as growth alone no longer commands premium multiples.