Billionaire David Tepper’s Top 5 Stock Picks

3. Micron Technology, Inc. (NASDAQ: MU)

Value: $601,440,000
Percent of David Tepper’s 13F Portfolio: 8.99%
Number of Hedge Fund Holders: 100

Semiconductor company Micron ranks 2nd on the list of billionaire David Tepper’s Appaloosa Management. Micron shares are up 163% over the last 12 months. Micron is ending the development of 3D XPoint memory chips amid a tepid response. Micron recently lifted its profit outlook for fiscal second quarter, citing strong demand and prices in both NAND and DRAM sectors.

As of the end of the fourth quarter, 100 hedge funds in Insider Monkey’s database of 887 funds held stakes in Micron Technology, compared to 79 funds in the third quarter. Arrowstreet Capital is the biggest stakeholder in the company, with 17.5 million shares, worth $1.3 billion. MU ranks 21st in our list of the 30 Most Popular Stocks Among Hedge Funds: 2020 Q4 Rankings.

In their Q4 2020 investor letter, Bonsai Partners highlighted a few stocks and Micron Technology Inc (NASDAQ:MU) is one of them.

Here is what Bonsai Partners said:

“Micron is a manufacturer of memory semiconductor chips. Micron’s stock appreciated 60.1% during the quarter.

Micron’s shares significantly appreciated this quarter for a couple of reasons. First, and most importantly, the DRAM market appears to have begun its cyclical rebound. As a result, we will likely see higher pricing and profitability through at least the calendar year 2021, hopefully meaningfully longer.

Another (and less meaningful) driver wasthat semiconductor stocks have become ‘en vogue’ once again. I may not be old, but I’ve been around the sector long enough to know that when generalists start getting excited about a ‘new paradigm’ around semiconductors, it’s time to be wary.

I wouldn’t call Micron overvalued, but I’d certainly say it’s more fairly priced today compared to when we first purchased it a few months ago.”