Billionaire hedge fund manager David Tepper has made a surprising move by exiting his position in Advanced Micro Devices (AMD), a stock that’s been a top choice among AI-focused investors in recent years. Tepper’s firm, Appaloosa Management, disclosed that it had completely sold off its AMD holdings, signaling a strategic pivot toward what he believes is a far greater opportunity in the artificial intelligence sector.
Tepper now appears to be betting on a lesser-known AI company, suggesting it has the potential to grow tenfold by 2033, an ambitious projection in an already crowded and competitive space. While he didn’t reveal the exact stock publicly, insiders point to companies operating in AI infrastructure and autonomous systems as likely candidates.
Although the identity of the “10x stock” hasn’t been officially confirmed, Tepper has previously favored firms that focus on data processing, next-gen computing, and automation. Analysts suggest his latest interest could involve companies working on AI model deployment, advanced robotics, or specialized chip architecture.
His track record adds weight to the speculation that Tepper has a history of identifying undervalued assets before the broader market catches on. However, with high potential comes high risk, and even the most promising AI stocks can face challenges scaling to that level of return over a decade.
AMD has delivered impressive returns over the past few years, especially as demand surged for GPUs and AI-optimized chips. However, Tepper’s exit signals a possible belief that most of the near-term upside may already be priced in. As chip stocks, including AMD, hit fresh highs in mid-2025, the billionaire investor may be shifting toward early-stage opportunities with greater long-term growth potential.
Key Takeaways
- David Tepper has sold his entire AMD stake through Appaloosa Management.
- He believes a new AI stock could grow 10x by 2033, although the company remains unnamed.
- Tepper’s exit from AMD may signal limited upside in the near term.
- His new focus likely targets firms innovating in AI infrastructure, automation, or data systems.
- Investors should remain cautious, as long-term projections involve significant uncertainty.
