Billionaire David Tepper’s hedge fund Appaloosa significantly boosted its investment in Nvidia in the second quarter of 2025, purchasing around 1.45 million shares and raising its stake in the GPU maker by more than 480%. Nvidia now ranks as the fund’s seventh-largest holding.

At the same time, Tepper cut positions in other tech giants. The sale of 2.16 million Alibaba shares reduced Appaloosa’s stake in the Chinese company by 23.4%, although it remains the fund’s largest holding. The stake in Meta was trimmed by 27.3%, but the company still holds the sixth spot in the portfolio with a 4.6% weight. Alphabet also faced reductions of 25.4%, yet it remains among the fund’s top ten holdings, ranking eighth.

The market believes Tepper is betting on Nvidia’s continued growth, given its dominance in the AI chip sector. Meanwhile, Alibaba, Meta, and Alphabet, despite the sales, are still viewed by analysts as promising long-term investments.