Will AI create the world’s first trillionaire?<\/strong>\u00a0Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need.\u00a0Continue \u00bb<\/strong><\/a><\/p>\n Appaloosa’s latest 13F shows that Tepper oversaw the purchase of 1 million shares of Micron during the fourth quarter. This increased the fund’s position to 1.5 million shares, making Micron Appaloosa’s fourth-largest holding by market value. It also booted AI kingpin Nvidia<\/strong> from Appaloosa’s top-five holdings.<\/p>\n There’s no doubt that AI is Micron’s core growth driver at the moment. It’s one of the world’s primary suppliers of high-bandwidth memory (HBM). HBM is stacked with graphics processing units (GPUs) to support fast-paced computing in AI-accelerated data centers.<\/p>\n Enterprise demand for AI data center infrastructure is virtually insatiable, leading to a shortage of HBM and GPUs. This combination of strong demand coupled with limited supply is affording Micron exceptional pricing power and has sent its gross margin to the heavens (56% in the fiscal first quarter, ended Nov. 27, 2025, compared to 38.4% one year prior).<\/p>\n Tepper was likely also attracted by Micron’s valuation. Even though shares have quadrupled since early August 2025, the company’s projected profits have risen even faster. As of the closing bell on March 13, Micron is trading at a forward price-to-earnings (P\/E) ratio of just 9.<\/p>\n What may be even more eye-popping than billionaire David Tepper tripling his stake in Micron is the persistent selling of his fund’s No. 1 holding, China-based Alibaba Group<\/strong> (NYSE: BABA). Appaloosa’s billionaire boss dumped 1,312,069 shares of Alibaba during the fourth quarter and sent 57% of his fund’s stake in this AI titan to the chopping block in 2025.<\/p>\n Story Continues <\/p>\n Profit-taking is certainly a logical reason for this selling. Since Tepper opened a sizable position in Alibaba during the second quarter of 2023, shares of the company have soared from the $80s to as high as $192. It’s possible Appaloosa’s head investor was simply booking profits last year.<\/p>\n However, there may be more to this story than just benign profit-taking. Tepper may be turned off by President Donald Trump’s tariff and trade policy, which has seemingly widened the trade rift between China and the U.S. Although Alibaba is a China-focused company, geopolitical turbulence can still adversely impact it.<\/p>\n Tepper might also view Alibaba as less of a bargain than he has in the past. While its forward P\/E of 15 remains historically cheap for an AI stock, especially factoring in the company’s cash-rich balance sheet, it’s a notably higher forward P\/E for Alibaba than in recent years.<\/p>\n Before you buy stock in Alibaba Group, consider this:<\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a><\/strong> for investors to buy now\u2026 and Alibaba Group wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n Consider when Netflix<\/strong> made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $513,407<\/strong>!* Or when Nvidia<\/strong> made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you\u2019d have $1,123,237<\/strong>!*<\/p>\n Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s total average return is 938% \u2014 a market-crushing outperformance compared to 188% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors.<\/strong><\/p>\n See the 10 stocks \u00bb<\/strong><\/a><\/p>\n *Stock Advisor returns as of March 18, 2026. <\/p>\n Sean Williams<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology and Nvidia. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy<\/a>.<\/p>\n![\"A](\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2026\/03\/65ec0880ef5978266a4e06fcc1617227.jpeg\")
Image source: Getty Images. <\/p>\n Image source: Getty Images. <\/p>\n