Appaloosa Management's David Tepper added to his big stake in Micron Technology and took a position in Korean stocks during the fourth quarter — both of which are AI-driven plays that are outperforming this year. The billionaire hedge fund manager boosted his holdings in Micron to $428.1 million, a 200% increase that makes the producer of computer memory crucial to AI systems the fund's fourth-largest holding, according to InsiderScore. A worldwide shortage in memory has boosted the stock up by 40% this year, already. On top of that, Tepper bought call options on Micron with a notional value of $71.4 million. To be sure, it's not clear if he sold those contracts, or when they expire. The investor added a new $182.3 million position in the iShares MSCI South Korea ETF (EWY) , which has been on a tear this year as investors look abroad for AI beneficiaries. The ETF, which has rallied 34% this year and hit a fresh high just last week, is dominated by chip leaders Samsung Electronics and SK Hynix. The two chip plays are outperforming at a time when other parts of the market are capitulating to AI disruption. Software stocks have crumbled already this year, as investors worried the latest AI models will hurt a sector reliant on high fees for its business. Wealth management and and real estate stocks, are other sectors that have come under pressure in recent weeks. Appaloosa's other bets include Alibaba, which remains the fund's top holding though Tepper reduced exposure by 20% in the fourth quarter. The Chinese internet giant is up by 6% this year. His second biggest holding is Alphabet, which he raised his exposure to by roughly 29%. Alphabet has underperformed this year amid pressure in the broader tech sector.
