David Tepper Reduces Micron Stake, Continues Buying TSM for Sixth Quarter
Billionaire David Tepper's Appaloosa Management reduced its stake in Micron Technology (NASDAQ:MU) by 41.4% during the second quarter of 2026 while continuing to add shares of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), marking a sixth consecutive quarter of accumulation. The shift highlights differing strategies for capturing AI demand—Micron, as an HBM supplier with potential pricing power and cyclical upside, versus TSM's broader toll-road model in advanced manufacturing. Micron recently reported record results driven by high-bandwidth memory used in AI accelerators but faces risks from planned $25 billion capital spending that could oversupply the market. TSM benefits across multiple chip design ecosystems with a 67.7% gross margin and ongoing advancements like its 2-nanometer process, though it carries higher costs and geopolitical exposure. Both stocks saw increased institutional ownership in Q2, but Tepper's trade reflects diverging views on earnings durability versus cyclical leverage.
Topics: AI Foundry Services HBM (High-Bandwidth Memory) Institutional Investors Semiconductors