The Motley Foolยท2025-11-19 09:44Core Viewpoint - David Tepper's Appaloosa fund significantly increased its exposure to artificial intelligence (AI) stocks during Q3 2025, particularly through substantial investments in Advanced Micro Devices (AMD), Baidu, and Qualcomm [2][16]. Group 1: Advanced Micro Devices (AMD) - Appaloosa's largest new position in Q3 was a stake in AMD, with the fund purchasing 950,000 shares valued at $153.7 million [3]. - AMD aims to close the gap with its main competitor, Nvidia, and Tepper's investment in AMD was notably larger than the 8.6% increase in Appaloosa's position in Nvidia [4]. - Since the end of Q3, AMD's share price has surged nearly 70%, attributed to the company's recent business advancements, including a strategic partnership with OpenAI and a goal for a revenue compound annual growth rate exceeding 35% [6][7]. Group 2: Baidu - Tepper increased Appaloosa's stake in Baidu by 67.2% in Q3, indicating a bullish outlook on the Chinese tech stock [8]. - Baidu, often referred to as the "Google of China," operates a leading search engine and provides cloud services and autonomous ride-hailing [9]. - Baidu's stock has risen over 30% since the end of Q3, and it remains attractively valued with a forward price-to-earnings ratio below 16 [11]. Group 3: Qualcomm - Appaloosa significantly increased its position in Qualcomm by 255.7% during Q3 [12]. - Qualcomm generates over 60% of its revenue from phone chips, with Apple as its largest customer, but is also experiencing growth in automotive and IoT sectors [12]. - Qualcomm's stock has seen only a low single-digit percentage increase since the end of Q3, but the company's entry into data center and robotics markets, along with new AI accelerators, could yield long-term benefits [14][15].