Appaloosa’s David Tepper says he is hesitant about investing in Nvidia

Appaloosa’s founder, David Tepper, said he is hesitant to buy more shares of Nvidia (NASDAQ:NVDA), and questions whether the chipmaker has enough power for growth.

In a CNBC interview, Tepper said he has sold “a lot” of his Nvidia (NVDA) shares, on the idea that the stock looked too high and that it would eventually come down. He sold 84% of his share in the second quarter, cutting his stake to about $85M by the end of June.

The stock is down 4.35% from a month ago, although up 149.4% year-to-date.

He questioned if the stock had “enough power for growth” and if “the next generation models could take their chips.”

He added that the stock looks great in 2024 and in 2025, but he “has no idea” about 2026.

Nvidia (NVDA) now has a $3T market cap but is still 12% off its all-time high in June.

Tepper concluded that Nvidia (NVDA) is “not my preferred vehicle versus other things that I have more confidence in.”