The Motley Foolยท2025-09-17 07:06Core Insights - David Tepper, the billionaire head of Appaloosa, is actively investing in leading AI companies, reflecting a strong belief in the sector's potential [4][6][9] Investment Activity - During the second quarter, Tepper purchased 1,450,000 shares of Nvidia, marking a 483% increase, 755,000 shares of Taiwan Semiconductor Manufacturing (TSMC), a 280% increase, and 190,000 shares of Amazon, an 8% increase [8] - Tepper also added to nine existing holdings and initiated eight new stock purchases during the quarter [7][9] Selling Activity - Tepper sold 1.55 million shares of Meta, a 79% reduction, and 1.25 million shares of Alphabet, a 45% reduction, along with selling his entire position of 130,000 shares in Broadcom [13][19] - The selling activity is attributed to profit-taking, as Tepper frequently adjusts his portfolio [14][15] Market Context - The buying activity in AI stocks was likely influenced by a brief market downturn in early April, providing an opportunity to acquire high-growth tech stocks at perceived discounts [9] - The S&P 500's Shiller price-to-earnings ratio reached 39.58, indicating a high valuation that could lead to potential market corrections [16] Company Insights - Nvidia is recognized for its leading position in AI hardware, with plans to ramp up production of new GPUs [12] - TSMC is expanding its chip production capacity, which is crucial for meeting the demand for AI-related technologies [12] - Amazon Web Services (AWS) holds a 32% market share in cloud infrastructure services and is integrating generative AI solutions into its offerings [12]