Appaloosa Doubles Amazon Stake by 98% as It Cuts NVIDIA 13% and AMD 32%
Updated
Updated · 24/7 Wall St. · Jun 22
Appaloosa Doubles Amazon Stake by 98% as It Cuts NVIDIA 13% and AMD 32%
2 articles · Updated · 24/7 Wall St. · Jun 22
Summary
2.14 million Amazon shares were added by David Tepper’s Appaloosa in the quarter ended March 31, lifting Amazon to about 15% of the fund’s disclosed portfolio and making it its largest holding.
The rebalance paired that near-doubling with trims of roughly 13% in NVIDIA and 32% in AMD, signaling a shift from chipmakers to a cheaper AI exposure through Amazon and AWS.
AWS underpins the move: Q1 2026 revenue rose 28% year over year to $37.59 billion—its fastest growth in 15 quarters—while operating margin reached 38%.
Amazon’s valuation also looks less stretched, trading around 34 times earnings versus AMD’s roughly 202 times, even after Amazon posted Q1 EPS of $2.78 against a $1.73 estimate.
The bet still carries execution risk because Amazon plans about $200 billion in 2026 capex, pressuring near-term free cash flow as investors watch whether AWS growth can justify the spending.