David Tepper Sells Micron and SanDisk Shares, Hedges Against Major Customer
Billionaire hedge fund manager David Tepper has reduced his stake in both Micron Technology (NASDAQ: MU) and SanDisk Corporation (NYSE: SNDK), selling a significant portion of each. The moves were revealed through Appaloosa Management's second-quarter Form 13F filing, showing that Tepper cut his position in Micron by 41% during the quarter while completely exiting his stake in SanDisk. Tepper also purchased put options on one of these companies' largest customers, suggesting a potential bearish outlook. Both stocks have surged due to strong demand for memory chips driven by AI and data center growth; however, Tepper's actions may indicate concerns about an eventual market correction as supply increases and cyclical demand patterns emerge. Micron remains the second-largest holding in Appaloosa’s portfolio at 15%, while SanDisk was previously a top-ten position. The memory-chip industry is historically volatile due to long lead times for production capacity, which can result in oversupply and falling prices when demand slows.
Topics: 13F filings hedge funds stock trading