David Tepper sells 41% of Micron shares, and it’s still his second-largest holding

When you sell nearly half your position in a stock and it’s still your second-biggest bet, you know you’ve had a good quarter. David Tepper’s Appaloosa Management dumped 690,000 shares of Micron Technology during Q2 2026, trimming the fund’s stake by 41% to 975,000 shares.

The punchline: the remaining position is worth approximately $1.13B, more than the entire stake was worth before the selloff. That’s what happens when a stock surges 242% in three months.

The numbers behind the trim

Appaloosa’s 13F filing, submitted on August 14, reveals a portfolio valued at roughly $7.5B to $7.7B. Even after the aggressive reduction, Micron still accounts for about 14.6% to 15% of the fund’s total equity holdings.

Only Amazon sits higher in the pecking order, with a position worth around $1.19B.

At quarter-end, MU shares were trading at approximately $1,154 per share. For context, that means Tepper’s 690,000 sold shares were worth somewhere in the neighborhood of $796M at exit prices, assuming he sold near the end of the quarter.

The filing also showed Appaloosa completely exited its SanDisk position, which was valued at roughly $179M. Meanwhile, the fund increased its stake in Taiwan Semiconductor by 24%, suggesting Tepper isn’t souring on semiconductors broadly. He’s just being selective about where he wants his chip exposure.

Profit-taking or something deeper

The more interesting signal might be his increased allocation to TSMC. Taiwan Semiconductor manufactures the advanced chips that power everything from data center GPUs to smartphone processors. Boosting that position by 24% while trimming Micron suggests Tepper may be shifting his semiconductor thesis slightly, favoring the foundry side of the equation over memory.

The hedge fund split on Micron

Tepper isn’t the only big name reshuffling his Micron cards. The Q2 filings reveal a notable split among institutional investors.

Several large funds reduced their MU stakes during the quarter, following a similar profit-taking logic after the stock’s explosive run. But the trade wasn’t one-directional. Coatue Management, a tech-focused fund with a strong AI thesis, notably increased its Micron position during the same period.

That divergence tells a story about where different investors think we are in the AI-driven memory cycle. The sellers are looking at a stock that’s already priced in enormous growth and deciding to lock in returns. The buyers are looking at the same stock and concluding that AI infrastructure buildouts will sustain demand for high-bandwidth memory chips well beyond current levels.

Micron’s management has indicated that tight supply conditions for chips could persist up until 2028, suggesting that market dynamics surrounding memory technology are likely to remain critical in the near future.

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