Appaloosa Cuts Microsoft Stake 82%, Builds $179 Million Sandisk Bet
Updated
Updated · The Motley Fool · Jun 8
Appaloosa Cuts Microsoft Stake 82%, Builds $179 Million Sandisk Bet
1 articles · Updated · The Motley Fool · Jun 8
Summary
Appaloosa slashed 82% of its Microsoft holding in the first quarter and opened its only new position: a nearly $179 million stake in Sandisk, equal to about 3% of the portfolio.
Microsoft fell 23% in the quarter—its worst stretch since 2008—as investors questioned AI valuations, heavy spending and whether Copilot can defend the software giant’s franchise.
Sandisk offered the opposite exposure: NAND memory demand is rising as larger AI models need more permanent data storage, helping drive the stock up more than 4,100% over the past year.
UBS expects NAND supply to stay tight through end-2027, while Counterpoint said Sandisk held 13% of global NAND revenue in Q1 2026 in a market that reached $46 billion.
The shift underscores a broader AI trade from platform leaders toward supply-chain components, though memory stocks remain cyclical and highly dependent on the durability of the AI boom.