Billionaire Tepper Sells Nvidia, Amazon
Billionaire hedge fund manager David Tepper sold positions in Nvidia and Amazon in Q4, joining a wave of insiders who have offloaded over $16 billion in Big Tech stock. The move comes as Nvidia itself dumped its entire $182 million stake in Applied Digital. This pattern of institutional selling suggests 'smart money' may be growing cautious as market valuations peak.
David Tepper's Appaloosa Management trimmed its holdings in Nvidia by 10.5%, selling 200,000 shares in the fourth quarter. The fund also reduced its stake in Amazon by 12.8%, which amounted to the sale of roughly 320,000 shares. These moves were part of a broader portfolio adjustment that also saw Appaloosa slash its stake in Alibaba by over 1.3 million shares. While Tepper was trimming his positions, he was also making significant new investments in other areas of the tech sector. Appaloosa dramatically increased its stake in memory-chip maker Micron Technology by 250%, adding 1,000,000 shares. The firm also showed renewed confidence in Meta Platforms and Alphabet, boosting its stakes by 62% and continuing to accumulate shares, respectively. The sale of Nvidia stock by a major investor was mirrored by Nvidia's own investment actions. In the same quarter, Nvidia's investment arm completely divested its stakes in AI data center company Applied Digital, selling all 7,716,050 of its shares. The chipmaker also sold its entire holding of 1,101,249 shares in Arm Holdings. This pattern of selling by prominent investors and corporations has been noted as a broader trend of profit-taking in the tech sector. Following a significant market rally since October 2023, insider selling has reportedly reached its highest levels since 2023, suggesting that some see valuations as potentially peaking.
