David Tepper entered the second quarter with his hedge fund sitting on a massive stake in one of 2026's hottest memory stocks. At the end of March, his Appaloosa portfolio held 1.67 million shares worth around $562.5 million. Given its exposure to the booming demand for AI memory and its tremendous run this year, holding on may have seemed like the obvious move.
During Q2, Appaloosa sold 690,000 shares, cutting its stake by nearly 41%. That eye-catching reduction isn't entirely out of character for arguably one of the most successful fund managers over the past three decades. Surprisingly, though, despite Tepper selling off roughly 50% of shares, the value of what remained didn't shrink.
By June 30, Appaloosa's remaining position was worth $1.1 billion, which created one of the more strange-looking moves in Tepper's latest portfolio. Tepper's Appaloosa axed a ton of Micron Technology (MU) shares from its portfolio in Q2. Michael Burry increases his bet against popular chip giant Warren Buffett reveals he broke his own investing pattern Mark Cuban bets on MLB with Athletics minority stake Appaloosa sold 690,000 Micron shares, cutting its position 41%, from 1.665 million shares to 975,000, according to a SEC filing.
Interestingly, the value of the stake surged from $562.5 million to $1.125 billion between March 31 and June 30. That dichotomy is explained by Micron's tremendous run. Based on Appaloosa's quarter-end filing values, Micron went from about $338 per share at March 31 to $1,154 at June 30, representing a whopping 242% increase.
Also, the rally clearly had a ton of fundamental support. Micron's fiscal Q3 sales surged to a record $41.46 billion, from $23.86 billion the prior quarter and $9.30 billion a year earlier. Adjusted EPS jumped to $25.11, while adjusted gross margin grew to 84.9%.
Moreover, management guided fiscal Q4 revenue to $50 billion, sailing above Wall Street expectations. Micron stock jumped another 17% to record highs following those results, as per Yahoo Finance. AI memory demand remains the primary driver.
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