David Tepper: Micron Saved Him

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The Answer Comes on May 15

"While everyone was down 10% from the tariff shock, how did Tepper post +8.75%?"

In late March 2026, Appaloosa's Q1 performance of +8.75% leaked (an unofficial estimate — Appaloosa does not publicly disclose returns). That places it among the top performers of the quarter, even as the S&P 500 fell 4.6%. At the center of that outperformance was a $428M position in Micron (MU) built in Q4 2025. The May 13F will reveal what came next.

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The Position He Built in Q4 2025

Tepper's Q4 2025 portfolio can be distilled into a single thesis: "The next bottleneck in AI is memory."

The execution was a 250% surge in Micron exposure — from 420,000 shares to 1.5 million shares, a $428M position representing 6.25% of the portfolio. He trimmed NVDA, fully exited AMD, and concentrated the proceeds into the primary beneficiary of HBM (High Bandwidth Memory) demand. On top of that, he initiated a $182M position in EWY (Korea ETF) — a dual bet on the Korean semiconductor value chain anchored by Samsung Electronics and SK Hynix.

At the same time, he quietly trimmed Alibaba by 20%, beginning a gradual reduction in China exposure.

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Q1: Micron Rescued the Portfolio

Micron's earnings results proved just how precise Tepper's bet was.

Micron Q1 FY2026 (reported December 2025): Revenue of $13.6B, up 56.7% YoY. Adjusted EPS of $4.78, beating consensus of $3.94–$3.95 by 21.3%. Operating income of $6.4B, up 182% YoY — a record-high level. HBM demand far exceeded expectations.

That earnings beat provided sustained support for MU throughout Q1, serving as the primary driver of Tepper's top-tier performance. While the broader market was rattled by tariff fears, the AI memory cycle never stalled.

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Then Came Reports of a Massive Liquidation

There's a twist. In March 2026, reports emerged that Tepper had liquidated the majority of Appaloosa's portfolio. There has been no official confirmation, but the market is interpreting this through three lenses.

① Profit-taking: MU up 30%+, EWY up 20%+ — sufficient gains in Q1 alone, with cash secured ahead of a potential second round of tariffs

② Macro repositioning: With recession probability breaking above 45%, rotating out of equities and into fixed income and macro positions

③ Staging a new major bet: A complete portfolio overhaul à la Druckenmiller — quietly building a new thesis not yet disclosed

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What to Watch in the May 13F

The next move of a top-performing manager always commands attention — especially when that performance is followed by reports of a full-scale liquidation. The May 13F will show exactly where Tepper stands right now.

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Data as of: Q4 2025 SEC 13F (filed February 2026). Appaloosa Q1 2026 return of +8.75% (unofficial leaked estimate). Micron Q1 FY2026 revenue $13.6B (YoY +56.7%), adjusted EPS $4.78, operating income $6.4B.