Billionaire investor David Tepper is making moves again, and his latest target is not your typical AI chip company.
According to the latest 13F filing from his hedge fund, Appaloosa Management, the investment maestro known for his contrarian bets and turnaround plays executed a notable portfolio shift in Q3 2025. He significantly trimmed his stakes in high-flying AI beneficiaries—including Intel (INTC), Oracle (ORCL), and a long-time holding Micron Technology (MU)—and turned his attention to Qualcomm (QCOM), a stock that hasn’t fully taken off with the AI trend.
Tepper’s maneuvers showcase his classic “buy low, sell high” discipline.
While cashing out of winners, Tepper’s major new tech purchase in the quarter wasn’t a name typically at the top of investors’ AI lists—and that may be precisely the point.
Qualcomm (QCOM) is quietly positioning itself to capitalize on the proliferation of AI. Best known for its wireless connectivity patents and the baseband chipsets found in nearly every smartphone globally, the company’s non-baseband chip business is growing rapidly. Its high-end Snapdragon processors power many Android devices, and it is gaining traction in automotive connectivity, processing, and an emerging PC business.
A key development came in October when the company announced a new suite of AI chips, slated for 2026 and 2027, designed specifically for large language model inference. As companies develop more AI use cases and build smaller models capable of running on-device rather than in massive data centers, Qualcomm’s non-baseband sales could see accelerated growth.
Qualcomm faces a known headwind: the loss of a major baseband chip customer over the coming years. Yet, Tepper’s contrarian mindset likely focuses on what lies beyond that challenge—the underlying strength of its diversified businesses and the AI tailwind. These factors should support steady revenue growth, with potential for acceleration once the customer transition is in the rearview mirror.
Trading at a forward P/E ratio of just 13, the stock appears inexpensive. For Tepper, buying a reasonably valued, AI-enabled company with foundational businesses across critical end markets (mobile, auto, PC, data center) amidst generally rich AI valuations is a classic “be greedy when others are fearful” play. This time, he’s betting on the future diffusion of AI from the cloud to the edge, with Qualcomm as a potential key—and still overlooked—player in the ecosystem.
