Wall Street tycoon Tepper bets on AI: Micron holdings surge 200%, buys new Korea ETF

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David Tepper of Appaloosa Management made large bets on artificial intelligence-related investments in the fourth quarter of last year, significantly increasing his holdings in Micron Technology and initiating positions in Korean stocks. Both of these investments have performed strongly this year.

The billionaire hedge fund manager raised his position in Micron Technology to $428 million, an increase of 200%, making the key AI system memory chip manufacturer the fund’s fourth-largest holding, according to InsiderScore data. The global memory shortage has driven Micron’s stock price up nearly 30% this year.

Meanwhile, Tepper opened a new position of $182.3 million in the iShares MSCI South Korea ETF (EWY). This ETF is chiefly composed of chip giants like Samsung Electronics and SK Hynix and has surged 34% this year, hitting a new high just last week and attracting investors seeking international AI beneficiaries.

The strong performance of these chip-related investments stands in stark contrast to other market sectors. Software stocks have fallen sharply this year as investors worry that the latest AI models will impact the industry's reliance on high-fee business models.

Increasing Bets on Memory Chips

Tepper’s investment in Micron Technology shows strong confidence in AI infrastructure. In addition to lifting his stock holding to $428 million, he also purchased Micron call options with a nominal value of $71.4 million. However, it is not clear at this time whether he has sold these contracts or when they expire.

The global memory shortage has become a key factor driving the surge in Micron’s stock price. As a major manufacturer of the computer memory required for AI systems, Micron has directly benefited from the boom in demand brought about by the AI frenzy.

Targeting Korean Chip Leaders

Tepper’s investment in the Korea ETF offers him exposure to Samsung Electronics and SK Hynix, the two companies that dominate the ETF’s holdings structure. Investors are turning their attention overseas in search of beneficiaries in the AI supply chain, thus making Korean chipmakers increasingly favored.

This ETF’s 34% rise this year reflects the market’s recognition of Asian chipmakers’ role in the AI wave. This performance contrasts with the weakness of U.S. tech stocks.

Other Major Portfolio Adjustments

Alibaba remains Appaloosa’s number one holding, although Tepper reduced his stake by 20% in the fourth quarter. The Chinese internet giant is up 6% this year.

Alphabet is the fund’s second largest position. Tepper increased his holdings by about 29%, but Alphabet has underperformed this year, weighed down by overall pressure on the technology sector.

These portfolio adjustments show that Tepper is reallocating assets from traditional tech stocks to chipmakers, which benefit more directly from AI infrastructure development.

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