David Tepper's Appaloosa Management lifted its Amazon stake by 680,000 shares in the quarter ended June 30, a 15.8 percent increase that pushed the position to roughly 16 percent of the fund's $7.5 billion equity portfolio. The filing shows a concurrent retreat from semiconductor exposure: Micron was cut by 41.4 percent and Sandisk exited entirely, while Alphabet and Meta Platforms were raised by 6.7 percent and 54.6 percent respectively. Meta still sits at just 5.1 percent of the portfolio, leaving Amazon as the clearest expression of Tepper's conviction in the hyperscaler trade.
The portfolio shift
The reallocation reads like a rotation out of pick-and-shovel AI names and into the cloud providers building the infrastructure. Appaloosa's 13-F captures a snapshot through June 30; whether Tepper has added or trimmed since then will not be disclosed until the next quarterly filing is due. The fund now primarily manages Tepper's personal fortune, estimated at $23.7 billion, after decades of distressed-debt investing that built the firm's reputation.
AWS growth and capex
Amazon shares extended gains after the July 30 earnings report, driven by Amazon Web Services revenue growth of 37 percent, well ahead of consensus. CEO Andy Jassy used the call to raise the 2026 capital expenditure plan from $200 billion to $220 billion, a signal that demand for AI compute remains ahead of supply. The market treated the capex increase as a bullish indicator rather than a margin drag, rewarding the stock for visibility into future capacity.
Valuation context
At 22 times forward earnings estimates, Amazon trades at a modest premium to its Magnificent Seven peers. Alphabet, Meta and Microsoft currently change hands in the high-teens to low-20s multiple range. The bull case rests on AWS sustaining an AI-driven growth resurgence that justifies the premium through earnings compounding and, potentially, a sector-wide rerating if hyperscaler results collectively exceed expectations.
What to watch next
The next 13-F will reveal whether Tepper treated the post-earnings rally as an opportunity to add or to take profits. Until then, the portfolio's concentration, one-sixth in a single name, remains a deliberate bet that the infrastructure build-out has years to run, not quarters.