Billionaire David Tepper‘s hedge fund Appaloosa Management L.P. made significant changes to its portfolio in the first quarter of 2025 as it reduced its holding in the Jensen Huang-led tech giant Nvidia Corp.
What Happened: The hedge fund made crucial changes in its holdings during the quarter that ended March 31, 2025 according to its 13F filings.
This included offloading 56% of its stake in Nvidia, reducing the value of its holdings to $32.514 million at the end of the first quarter.
Meanwhile, the firm completely exited its competitor Advanced Micro Devices Inc., offloading all of its 1.2 million shares in the company.
It also added two new key positions in the first quarter, which included an addition of 75,000 shares of Jack Dorsey‘s Block Inc. valued at $4.074 million and 130,000 shares of Broadcom Inc. valued at $21.765 million.
When looking at other Magnificent 7 stocks in its portfolio, the fund held no common stocks of Tesla Inc. (NASDAQ:TSLA) and Apple Inc. (NASDAQ:AAPL).
However, Appaloosa offloaded shares of Microsoft Corp. and Amazon.com Inc. during the said quarter, and added Alphabet Inc. and Meta Platforms Inc. to its portfolio.
| Company | Holdings (as of Dec. 31) | Holdings (as of March 31) | Change (in %) | Value (as of March 31) |
| Nvidia Corporation (NASDAQ:NVDA) | 680,001 | 300,000 | -56% | $32.514 million |
| Advanced Micro Devices Inc. (NASDAQ:AMD) | 1,200,000 | 0 | -100% | 0 |
| Broadcom Inc. (NASDAQ:AVGO) | 0 | 130,000 | New | $21.765 million |
| Block Inc. (NYSE:XYZ) | 0 | 75,000 | New | $4.074 million |
| Microsoft Corp. (NASDAQ:MSFT) | 970,000 | 510,000 | -47% | $191.448 million |
| Amazon.com Inc. (NASDAQ:AMZN) | 2,600,000 | 2,510,000 | -3% | $477.552 million |
| Alphabet Inc. (NASDAQ:GOOG) | 1,881,963 | 2,010,000 | 7% | $314.022 million |
| Meta Platforms Inc. (NASDAQ:META) | 490,000 | 550,000 | 12% | $316.998 million |
Why It Matters: As the Magnificent 7 stocks have an exposure to artificial intelligence (AI) and weigh the heaviest in the S&P 500 index, Appaloosa’s move to reduce its holdings raises questions about the fund’s plans.
However, Block and Broadcom do add exposure to blockchain and AI in Appaloosa’s portfolio, a fund known for specializing in distressed debt.
Price Action: The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, rose on Wednesday. The SPY was up 0.056% at $607.12, while the QQQ rose 0.26% to $541.16, according to Benzinga Pro data.
On Thursday, the futures of the S&P 500, Dow Jones, and Nasdaq 100 indices were trading higher.
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