Billionaire David Tepper Explains Why He Doesn't Hold NVIDIA (NVDA) 'All the Way'

We recently published 10 Stocks Everyone’s Talking About As AI Investments Continue. NVIDIA Corp (NASDAQ:NVDA) is one of the stocks analysts were recently talking about.

Billionaire David Tepper of  Appaloosa Management was asked during a program on CNBC last month whether he’s an investor in NVIDIA Corp (NASDAQ:NVDA) “all the way.” Tepper said he’s gone “back and forth” on NVIDIA Corp (NASDAQ:NVDA), and while the stock remains in his portfolio, he does not have a large position in the company.

“I’ve haven’t held it all the way. I do own NVIDIA but I go back and forth and back and forth a little bit because I do, you know, I will trade a little bit. We’ve always had some NVIDIA position, but not the same size.”

Tepper talked about China-related worries during the program and said major tech companies in the Asian country are also beginning to make chips.

“What keeps my position from being too large because of worried about different things that can be there. You know some of the stocks like BABA … also making chips now, and they’ve been pushing it, so they’re doing it right and not maybe like the H20, Nvidia chip, or something like that, you know, of that quality.”

 Appaloosa has a $276.5 million stake in NVIDIA Corp (NASDAQ:NVDA) as of the end of the June quarter.

It’s hard to find cracks in Nvidia’s story in the short term. Why? Nvidia owns about 90% of the GPU market, which is expected to reach $3 to $4 trillion by 2030, according to Jensen Huang. McKinsey sees data center CapEx hitting $6.7 trillion with no slowdown in sight in the short term. Nvidia’s next-generation GPU series Rubin is coming in 2026, and the company also has a software edge in AI computing with its CUDA platform, which is now the de facto standard for AI programming. With no competitor and rising global demand for its chips, Nvidia is in a very strong market position.

Baird Chautauqua International and Global Growth Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its second quarter 2025 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) reported first quarter results that were extremely solid. The company took a write-down on China-specific datacenter products and flushed out any future China contributions from their guidance, following the new export restrictions introduced in April. Demand commentary ex China was extremely encouraging—Nvidia is outgrowing expectations despite supply constraints and outgrowing competing ASIC products by a large margin. We have been underweight Nvidia relative to the benchmark, which was up 46% in the quarter, given our short-to medium-term concerns that the feverish AI datacenter build may be resulting in overcapacity, which has not come to bear.”

While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.