David Tepper separates from Nvidia shares and relies on this AI share

• Nvidia participation reduced, AMD completely sold
• Evaluation and profit -taking possible reasons for sales
• Broadcom scores with AI, 5G, industrial and cyber security solutions

Tepper sells Nvidia, TSMC & AMD

Artificial intelligence (AI) is still the trend topic on the market – from which companies such as the Chipriesen Nvidia, AMD and TSMC benefit. However, David Tepper, head of Appaloosa, sold these coveted AI shares on a large scale last year. As The Motley Fool reports, they are very active in terms of adjustments to the portfolio, which is why it makes sense to look at the change in the previous year. This comparison shows that Tepper has reduced its NVIDIA participation by 93 percent or 4,120,000 shares between April 1, 2024 and March 31, 2025 (adapted to NVIDIA’s 10: 1 share split in June 2024), his TSMC participation reduced by 46 percent or 230,000 shares and has completely sold its AMD participation (1,630,000 shares).

A possible reason for the sale of the titles of these companies, which are very successful in their respective AB industry, could be profit. The share prices from NVIDIA, AMD and TSMC have been able to record a significant increase in recent years – and, as The Motley Fool reports, they have already shown that he was not shy about taking profits. The assessment could also have played a role for Tepper. In the past, industry leaders who benefited from a new trend have achieved a price sales ratio of 30 to 40-Nvidia has already reached this area and overall the stock market is historically expensive.

Instead, Tepper relies on this stock

While tapper shareholders from Nvidia, AMD and TSMC have repelled in the past few months, he has struck in another stock. In the first quarter, Appaloosa bought 130,000 stocks from Broadcom, which offers a variety of AI network, but is more than just a AI-controlled company. For example, AI is currently the most important growth engine from Broadcom and the company makes a name for itself thanks to its tailor-made AI chips, but Broadcom also has numerous other channels that generate sales and a positive operational cash flow, reports The Motley Fool. For example, the global expansion of the 5G network also offers moderate growth opportunities. In addition, Broadcom offers a number of solutions for industrial product lines and automobiles and has a department for cyber security solutions for companies. So the company – should it happen that a possible AI bubble burst – better positioned than hardware giants like Nvidia and AMD.

Editor finance.net

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