Billionaire David Tepper Sold 84% of Appaloosa's Stake in Nvidia and Is Piling Into This Historically Cheap Cyclical Stock

Group 1: Nvidia's Stake Reduction - David Tepper's Appaloosa significantly reduced its stake in Nvidia, selling 3.73 million shares, or 84.39% of its previous holdings, during the second quarter [3][4] - The reduction may be attributed to profit-taking after Nvidia's stock experienced a historic 10-for-1 split and reached an all-time high of $140.76 per share [3] - Concerns about a potential AI bubble and increasing competition in the AI GPU market may have influenced Tepper's decision to sell [4][5] Group 2: JD.com Investment - Tepper's fund increased its stake in JD.com, China's No. 2 e-commerce company, by purchasing 660,737 shares, raising its total holdings to 4,310,600 shares valued at approximately $116 million [6][7] - JD.com is considered undervalued, trading at just 6.5 times consensus earnings per share for 2025, with nearly half of its market cap backed by cash [9] - The company is well-positioned for long-term growth due to its control over inventory and logistics, which allows for superior margins compared to competitors like Alibaba [8][9]