Billionaire Investor David Tepper Sold 56% of His Fund's Stake in Nvidia and Loaded Up on This Market-Beating Transportation Stock Instead

Group 1: Nvidia - Appaloosa Management, led by David Tepper, significantly reduced its position in Nvidia, selling more than half of its shares in the first quarter of 2025 [1] - Nvidia's stock has experienced volatility in 2025, with a notable sell-off followed by a rebound, currently down only 2% for the year [2] - Concerns arose from competition with China's DeepSeek, which developed an AI chatbot using older Nvidia chips, raising doubts about demand for Nvidia's products [4] - Export restrictions imposed by the Biden administration limited Nvidia's ability to sell certain chips to China, leading to a $5.5 billion charge in Q1 2025 [5] - Despite market uncertainties, Nvidia's forward earnings multiple has become cheaper, making it a potential buy for long-term investors [6] Group 2: Uber Technologies - Appaloosa Management increased its stake in Uber Technologies, more than doubling its position [8] - Uber transitioned from a focus on growth to improving operations under CEO Dara Khosrowshahi, achieving its first profit in 2023 [9] - The company has seen continuous growth in profits and revenue, alongside increasing free cash flow, outperforming the broader market [9] - Uber aims to participate in the autonomous vehicle market by partnering with companies like Waymo and WeRide, viewing it as a $1 trillion opportunity [11] - The path to commercialization for self-driving vehicles includes regulatory challenges and safety concerns, areas where Uber can provide support [12] - Trading at less than 25 times forward earnings, Uber has the potential to enhance profitability and tap into the autonomous market for additional revenue streams [13]