Key TakeawaysAppaloosa reduced its Alibaba holdings by 12% and completely dumped JD.com, PDD Holdings, and the KWEB China internet ETFThe hedge fund boosted its Baidu position by 14%, maintaining targeted exposure to Chinese marketsTepper liquidated his entire SanDisk position following a 591% gain and reduced holdings in Micron and AMDAmazon emerged as the portfolio’s top holding with 5 million shares valued above $1.1 billionNew investments include CoreWeave shares and expanded positions in power generators Vistra and NRG EnergyBillionaire hedge fund manager David Tepper’s Appaloosa Management disclosed significant portfolio changes in its Q2 2026 13F filing submitted on August 14. The document reveals strategic shifts away from Chinese equities and semiconductor manufacturers toward artificial intelligence infrastructure and energy providers.Narrowing China Exposure With PrecisionAppaloosa reduced its Alibaba holdings by approximately 12% during the quarter and liquidated entire positions in JD.com and PDD Holdings. The fund also dumped the KraneShares CSI China Internet ETF, eliminating its broad-based Chinese internet sector exposure.Alibaba Group Holding Limited, BABAHowever, this wasn’t a complete Chinese market retreat. Appaloosa increased its Baidu holdings by approximately 14%, signaling the search giant remains Tepper’s preferred China play.These adjustments demonstrate a shift toward selective Chinese investments rather than wholesale market abandonment. The total number of disclosed positions dropped from 31 to 27, even as the portfolio’s aggregate value climbed from $5.9 billion to $7.7 billion.From Semiconductors to AI InfrastructureWithin the technology sector, Tepper completely divested his SanDisk holdings after capturing a remarkable 591% return. He reduced Micron holdings by 690,000 shares while maintaining 975,000 shares worth more than $1.1 billion. Positions in Advanced Micro Devices and Qualcomm were also trimmed.Rather than abandoning artificial intelligence, these proceeds were redeployed into different segments of the ecosystem.Appaloosa purchased 680,000 additional Amazon shares, bringing the total to 5 million shares—now the fund’s largest publicly disclosed holding. Taiwan Semiconductor Manufacturing received additional investment, as did Nvidia.Most notably, Tepper initiated a position in CoreWeave by acquiring 1,078,248 shares valued at approximately $107 million. The AI infrastructure company has secured a reported $104 billion revenue backlog.Positioning for the Electricity Demand SurgeThe filing’s most significant insight may be Tepper’s expanding wager on electrical power generation.Appaloosa increased stakes in both Vistra and NRG Energy, independent power producers serving data center facilities. Despite surging chip stocks, Vistra has declined nearly 8% year-to-date while NRG has dropped almost 20%.Vistra recently launched Helix Digital Infrastructure in partnership with Nvidia, KKR, and the Kuwait Investment Authority. NRG has allocated $3.2 billion toward constructing a 1.2-gigawatt Texas facility for a major cloud provider, with projections of $500 million in annual EBITDA.Department of Energy forecasts suggest data centers could consume 12% of total U.S. electricity by 2028.Tepper’s strategy suggests conviction that regardless of which companies dominate AI chip production, all will require massive power infrastructure. Vistra currently trades at roughly 16 times forward earnings while NRG trades at 14 times—substantial discounts compared to semiconductor manufacturers.This 13F filing captures holdings as of June 30, 2026. Current positions may differ from those reported.The post Tepper’s Appaloosa Slashes China Holdings While Betting Big on Amazon and AI Power Infrastructure appeared first on Blockonomi.