The Motley Fool·2025-08-25 07:51Core Insights - Appaloosa's billionaire investor David Tepper has been actively purchasing AI hardware stocks while reducing positions in favored AI stocks like Meta Platforms [1][5][13] Group 1: AI Hardware Investments - Tepper's investment strategy in the second quarter focused on AI hardware, with significant purchases in Nvidia (1,450,000 shares, 483% increase), TSMC (755,000 shares, 280% increase), and Intel (8,000,000 shares, new position) [6][10] - Nvidia's GPUs, particularly the Hopper (H100) and Blackwell models, are crucial for enterprise data centers, while TSMC is expanding its chip-on-wafer-on-substrate capacity to meet demand for AI-GPUs [10] - Intel is viewed as a value-oriented buy, trading below book value and receiving $7.9 billion from the CHIPS Act for domestic chip fabrication plants, positioning it for future growth [11] Group 2: Selling Activity in Meta Platforms - Tepper's Appaloosa exited five positions and reduced 16 others, including a 27% reduction in Meta Platforms shares, which is a favored AI stock among many fund managers [13][14] - The rationale for selling Meta may include locking in gains from a significant stock price increase from under $100 to over $600 per share between late 2022 and the second quarter of 2025 [15] - Despite concerns about the cyclical nature of advertising revenue, Meta's strong user base (3.48 billion daily users) and successful integration of AI solutions into its ad platform may enhance its pricing power [17][18][19]