Billionaire investor David Tepper's Appaloosa Management, the hedge fund he founded in 1993, filed its Q2 2026 13F on August 14, revealing a major reshuffle of the fund's disclosed equity portfolio. The quarterly form, which the Securities and Exchange Commission requires of institutional managers overseeing more than $100 million in U.S.-traded securities, shows Appaloosa trimming or fully exiting several China-focused and semiconductor positions during the quarter, while at the same time moving deeper into AI infrastructure names and power producers.

Tepper Gets More Selective on China

Tepper cut the fund's Alibaba stake by roughly 12% and sold out of JD.com and PDD Holdings entirely. He also exited the KraneShares CSI China Internet ETF (KWEB), removing the portfolio's broad exposure to Chinese internet companies. The reductions mark a shift in tone for a manager who had been among the most vocal China bulls on Wall Street, saying publicly in late 2024 that he was buying Chinese stocks broadly after Beijing rolled out stimulus measures.

The pullback, however, was not a full retreat from the country. Appaloosa added approximately 14% to its Baidu position, making Baidu the standout China bet in the portfolio. Taken together, the moves show Tepper selecting individual companies rather than betting on China as a whole.

Across the book, the number of disclosed holdings fell from 31 positions to 27, while the portfolio's reported value grew from $5.9 billion to $7.7 billion.

Rotating Out of Chips, Deeper Into AI Infrastructure

On the technology side, Tepper exited SanDisk entirely, closing out a position after the stock had risen 591% since he bought in. He trimmed Micron by 690,000 shares, though the fund still holds 975,000 Micron shares worth more than $1.1 billion. Holdings in Advanced Micro Devices and Qualcomm were also cut.

The money did not leave the AI trade — it moved further into it. Tepper added 680,000 Amazon shares, lifting the position to 5 million shares and making Amazon his largest disclosed holding. He also added shares of Taiwan Semiconductor Manufacturing and topped up his Nvidia stake.

The filing additionally shows a brand-new position in CoreWeave, the GPU cloud provider that supplies computing capacity for AI workloads and went public on Nasdaq in March 2025. Appaloosa bought 1,078,248 shares valued at approximately $107 million. CoreWeave has a reported $104 billion revenue backlog already booked.

The Power Positions Behind the AI Trade

Perhaps the most overlooked part of the filing is the fund's growing weighting in electricity. Tepper added to Vistra and NRG Energy, two independent power producers that supply electricity to data centers. Vistra is down nearly 8% year-to-date and NRG is down almost 20%, even as chip stocks have surged over the same period.

Vistra recently formed a new venture called Helix Digital Infrastructure alongside Nvidia, KKR, and the Kuwait Investment Authority. NRG, for its part, has committed $3.2 billion to build a 1.2-gigawatt facility in Texas for a major hyperscaler, a project targeting $500 million in annual EBITDA.

The U.S. Department of Energy projects that data centers could account for 12% of total U.S. electricity demand by 2028. On valuation, Vistra trades at around 16 times forward earnings and NRG at 14 times, both well below the multiples carried by chip designers.

Tepper appears to be betting that whoever wins the AI chip race, they will all need power to run it.

Because 13Fs can be filed up to 45 days after a quarter ends and disclose only long positions, they offer a snapshot rather than a playbook. This filing reflects holdings as of June 30, 2026, and positions may have changed since then. The next filing, due by mid-November, will show whether the China trimming and the power buildout extended into the third quarter.