David Tepper, billionaire hedge fund manager at Appaloosa Management, is quietly reaping big rewards this summer. While Nvidia Corp (NASDAQ:NVDA) grabs headlines, Tepper's under-the-radar bet on Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) has surged nearly 25% in under three months, generating roughly $57 million in paper gains.
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TSM: The Hidden AI Winner
Appaloosa's latest 13F filing shows Tepper held 1.02 million shares of TSM as of June 30, 2025, valued at about $232 million. By Sept. 23, the stock climbed to $282.71, rewarding Tepper's bold move to add 755,000 shares (+280%) in the second quarter.
TSM's growth is fueled by relentless demand for advanced AI chips, making it a key player in the global semiconductor supply chain and a prime example of Tepper's knack for spotting less obvious opportunities.
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Nvidia Still Contributes
While TSM stole the spotlight, Tepper's Nvidia position also added to his summer windfall. With 1.75 million shares, Nvidia rose from $157.99 on June 30 to $178.43 by Sep. 23, producing approximately $35.8 million in gains.
Combined, these two AI bets have delivered nearly $93 million in under three months, showing the payoff of blending headline-grabbing giants with hidden gems.
Strategy That Pays Off
Tepper's approach highlights his ability to strike a balance between risk and reward. By pairing high-profile AI names like Nvidia with critical but less obvious players like TSM, he captured outsized gains while navigating the complex chip market.
For investors watching the AI space, Tepper's moves are a reminder that sometimes the most lucrative plays come from those flying under the radar.
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