In this article, we discuss the 10 New Stocks in David Tepper’s Portfolio.
David Tepper, the billionaire founder and president of Appaloosa Management, adjusted his portfolio in Q3 2025 by selling his positions in Oracle and Intel entirely and reducing his stakes in major industry players, including UnitedHealth, Micron Technology, Vistra Corp, and Lyft. At the same time, the billionaire notably locked in on Whirlpool, upping stakes by nearly 2000%. Appaloosa’s position in Goodyear Tire & Rubber also expanded by approximately 500% in Q3. The billionaire also added eight new financial services, banking, and fintech stocks to his portfolio during the third quarter of 2025.
Tepper’s moves indicate a recalibration toward sectors he expects to benefit in the coming year. According to Goldman Sachs’ global economic outlook 2026, published on December 19, the global GDP is expected to climb 2.8% in 2026, up from the prior consensus estimate of 2.5%. US GDP growth is expected to rise to 2.6%, outpacing market estimates, driven by lower taxes, a more favorable financial environment, and reduced economic burden from tariffs.
Goldman Sachs Asset Management also recently published its Investment Outlook 2026 report, in which it expects economic conditions to remain driven by multiple factors. For the US equity market, they maintain focus on companies with high gross margins, solid balance sheets, and sustainable growth drivers. The report further states:
“The Magnificent 7 continue to expand their market share through strong core businesses and strategic reinvestment. In our view, the strong earnings power of these large companies may set the stage for further gains. We believe hyperscalers’ AI capex will extend into 2026, and we continue to monitor associated AI infrastructure spending, as well as AI application build-out and monetization.
However, we see some signs of homogeneity in performance among these large players evolving into greater dispersion. We’re observing a similar trend of increasing scale across other market segments. In retail, for instance, Walmart and Costco have captured a significant share of sales growth, benefiting from strong value offerings, operational leverage, and effective supplier negotiations. Financials is another area in which this trend is clear.”
Goldman Sachs team further added:
“We seek to harness opportunities arising from market dispersion, identify high-quality businesses supported by megatrends, and maintain a disciplined approach to valuations in an effort to deliver strong returns.”
With that outlook in mind, let’s take a look at the 10 new stocks in billionaire David Tepper’s portfolio.
Our Methodology
For this list, we used Appaloosa Management’s Q3 13F portfolio, selecting the 10 new stocks in which the hedge fund acquired stakes. We have included the hedge fund’s stake value for each holding at the end of Q3 2025, along with the hedge fund’s overall sentiment for these stocks as of Q3 2025. The list is sorted in ascending order by the hedge fund’s stake value in each position.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10. Zions Bancorporation, National Association (NASDAQ:ZION)
Number of Hedge Fund Holders: 37
Appaloosa Management’s Stake Value: $16,125,300
Zions Bancorporation, National Association (NASDAQ: ZION) is one of the new stocks David Tepper has bought. As of December 29, the average price target for ZION suggests an upside of 6%; however, the Street high indicates an upside of 26%. In Q3 2025, David Tepper purchased 285,000 shares of ZION valued at $16.1 million.
On December 16, The Fly reported that Anthony Elian, an analyst from JPMorgan, maintained a Neutral rating on ZION with a price target of $67, up from $62. JPMorgan forecasts “solid upside potential” in 2026 for regional banks. The positive drivers include further rate reductions by the Fed, steady loan growth, and increased mergers and acquisitions, according to the analyst’s note to investors.
Separately, on December 18, Matthew Clark, a Piper Sandler analyst, reiterated a Hold recommendation on Zions Bancorporation with a price target of $63.
In a corporate update dated December 22, Zions Bancorporation reported that the President and Chief Executive Officer of the Zions Bank segment, Paul Burdiss, is retiring effective December 31, 2025. His position will be succeeded by Nathan Callister, who is the bank’s Executive Vice President and Executive Director of Commercial Banking. He has also previously worked at Wells Fargo Bank in an executive role.
Zions Bancorporation, National Association (NASDAQ:ZION) is a Utah-based regional bank that offers commercial and small business banking, retail banking, investment banking, real estate financing, and wealth management.
9. Western Alliance Bancorporation (NYSE:WAL)
Number of Hedge Fund Holders: 35
Appaloosa Management’s Stake Value: $16,910,400
Western Alliance Bancorporation (NYSE:WAL) is among the new stocks David Tepper has purchased. As of December 29, the average price target for WAL suggests an upside of 18%; however, the Street high indicates an upside of 33%. In the third quarter of 2025, billionaire David Tepper added WAL to his portfolio by purchasing 195,000 shares valued at nearly $17 million.
On December 19, Jared Shaw, a Barclays analyst, reiterated a Buy call on Western Alliance Bancorporation (NYSE:WAL) with a target price of $115.
Separately, on December 22, the company disclosed that its Compensation Committee has launched the Western Alliance Bancorporation Executive Stock and Bonus Deferral Plan. This plan came into effect on December 19, and it was developed as a deferred compensation arrangement for some employees, most of whom serve as the bank’s Executive Leadership Team.
The selected employees can choose to defer 0%, 25%, or 50% of their annual cash bonus and some equity compensation each year, and these amounts are stored as deferred stock units. These deferred units can also receive dividend payouts if the linked shares pay cash dividends.
This deferred payment plan does not extend to company contributions, and upon leaving the position, participants can withdraw the deferred sum in two or three yearly payouts. Any portion of an annual cash bonus deferred must comply with Western Alliance Bancorporation’s Dodd-Frank Clawback Policy.
Western Alliance Bancorporation is a bank holding company for Western Alliance Bank, offering a range of banking services for businesses and individuals.
8. Owens Corning (NYSE:OC)
Number of Hedge Fund Holders: 52
Appaloosa Management’s Stake Value: $22,845,790
Owens Corning (NYSE:OC) is one of the new stocks bought by David Tepper. As of December 29, the average price target for OC suggests an upside of 17%; however, the Street high indicates an upside of 57%. David Tepper added Owens Corning to his Q3 portfolio by acquiring 161,500 shares of the company worth $22.8 million.
On December 15, analyst Sam Reid from Wells Fargo maintained an Overweight rating on Owens Corning (NYSE:OC) but trimmed the price target from $150 to $130. According to the firm, 2025 is ending with a lot of skepticism in the housing market, which makes the outlook for 2026 challenging. Wells Fargo’s strategy is to prioritize well-valued, high-quality investments. The firm observed that riskier opportunities will come into play at some point, but now is not the right time.
Separately, on December 4, Owens Corning reported a 15% increase in its quarterly cash dividend, which now stands at $0.79 per common share. The dividend will be distributed on January 21, 2026, to shareholders of record as of January 5.
Moreover, on December 18, the company announced that it is promoting José Méndez-Andino to Executive Vice President and Chief Innovation Officer. He will focus on product innovation and designing new applications that strengthen the company’s position in the high-quality building products market.
Owens Corning (NYSE:OC) was founded in 1938 and is based in Toledo, Ohio. The company offers building products for homes and businesses, and operates through four main segments: Roofing, Insulation, Doors, and Composites.
7. Comerica Incorporated (NYSE:CMA)
Number of Hedge Fund Holders: 36
Appaloosa Management’s Stake Value: $31,690,500
Comerica Incorporated (NYSE:CMA) is among the new stocks David Tepper has bought. As of December 29, the average price target for CMA suggests a 4% downside; however, the Street high indicates an 11% upside. David Tepper added Comerica to his third-quarter portfolio by purchasing 462,500 shares of the company, amounting to $31.7 million.
On December 22, HoldCo Asset Management released a presentation called “When The Bank Was Healthy But The Board Got Scared”, aimed at the board of directors of Comerica. In this presentation, HoldCo reprimanded the bank for its potential merger with Fifth Third Bank, which was announced in October 2025 as a $10.9 billion all-stock deal. HoldCo advised Comerica shareholders to vote against the merger, noting that the transaction timeline does not allow time for a proxy fight. Moreover, the compensation package of Curtis Farmer, Comerica’s Chairman, President, and CEO, is the underlying motivator for this merger, rather than optimizing shareholder value, according to HoldCo. The firm noted that this merger is one of the fastest executions in banking history since 2008, in order to avoid board shuffling and the likely CEO dismissal.
HoldCo also pointed out that Comerica rejected a merger proposal by ‘Institution A’ and did not negotiate different terms, because the timeline was longer and would have resulted in Mr. Farmer’s position being threatened at the company. HoldCo told CMA shareholders that voting no will not prevent the merger, but it will force Comerica and Fifth Third Bank to offer better terms.
Vik Ghei and Misha Zaitzeff, HoldCo Co-Founders, further added:
“Accordingly, we continue to recommend a ‘NO’ vote—a decision with limited downside and a meaningful likelihood of achieving a substantially higher valuation for shareholders. Our July analysis, using standard 3-year TBV earn back metrics from recent bank deals and updated for Fifth Third’s current stock price, suggests fair value for Comerica in a sale could approach $120 per share, materially above today’s implied consideration.”
Comerica Incorporated (NYSE:CMA) is a financial services company that operates through three main segments: Commercial Bank, Retail Bank, and Wealth Management.
6. Citizens Financial Group, Inc. (NYSE:CFG)
Number of Hedge Fund Holders: 48
Appaloosa Management’s Stake Value: $31,896,000
Citizens Financial Group, Inc. (NYSE: CFG) is among the new stocks added by David Tepper to Appaloosa’s 13F portfolio. As of December 29, the average price target for CFG suggests a 5% upside; however, the Street high indicates a 25% upside. In Q3 2025, billionaire David Tepper added CFG to the portfolio by picking up 600,000 shares of the company worth nearly $32 million.
On December 22, Truist analyst Brian Foran maintained a Hold recommendation on Citizens Financial (CFG) and lifted the price target from $56 to $63, as part of a larger research note revising banking models amid management updates. The analyst informed investors that the bank had gained some operating leverage in operating expenses and marketing, which is taking some pressure off from higher customer engagement expenses. Truist added that market consensus indicated a marginal EPS slowdown across the banking space, but overall management commentary “feels more optimistic”.
Previously, on December 11, Citizens Capital Markets & Advisory (a subsidiary of Citizens Financial Group) revealed that it is solely arranging debt financing for River Rock Entertainment Authority, amounting to $390 million, with Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) stepping in as the primary real estate financing collaborator.
The new funding will be utilized to upgrade the Tribe’s current River Rock Casino into a top-tier destination resort casino, which will be run by Caesars Entertainment under the Caesars Republic brand, with a planned opening in the summer of 2027.
Citizens Financial Group, Inc. (NYSE:CFG) is an American bank holding company that operates through Consumer Banking and Commercial Banking divisions.
5. KeyCorp (NYSE:KEY)
Number of Hedge Fund Holders: 48
Appaloosa Management’s Stake Value: $37,753,800
KeyCorp (NYSE:KEY) is one of the new stocks bought by David Tepper. As of December 29, the average price target for KEY suggests an upside of 4%; however, the Street high indicates an upside of 18%. As of Q3 2025, Tepper owns a $37.75 million stake in KeyCorp, which is a new addition to the billionaire’s stock portfolio.
On December 22, Truist analyst Brian Foran assigned a Hold recommendation on KeyCorp as part of a wider research note on banks, and boosted the target price from $19 to $22.
Previously, on December 9, KeyCorp CEO Chris Gorman said that the bank is not in the market for acquisitions and will focus on share repurchases instead. He noted that although the industry appears to be undergoing M&A activity, hinting at the Comerica-Fifth Third Bank merger, KeyCorp is not currently participating. The activist investor, HoldCo Asset Management, also signaled KeyCorp days before the CEO’s remarks to steer clear of bank acquisitions. About HoldCo’s report, Gorman commented:
“We’re still digesting it … we’re looking at all the content in there. Most important theme is a moratorium on doing bank deals. I think we’re perfectly aligned on that.”
Regarding the bank’s share buyback plan, Gorman said:
“We’re going to spend time buying KeyCorp stock. We are an undervalued stock, we believe that strongly and we’re going to spend our capital buying our stock,”
KeyCorp (NYSE:KEY) is an Ohio-based bank holding company for KeyBank, offering retail and commercial banking services.
4. Truist Financial Corporation (NYSE:TFC)
Number of Hedge Fund Holders: 56
Appaloosa Management’s Stake Value: $63,436,500
Truist Financial Corporation (NYSE:TFC) is among the new stocks David Tepper has bought. As of December 29, the average price target for TFC suggests an upside of just 1%; however, the Street high indicates an upside of 19%.
On December 19, Morgan Stanley analyst Betsy Graseck assigned a Hold rating to Truist Financial and set a $56 price target.
Previously, on December 16, Truist Financial reported that its board had approved a share buyback plan for up to $10 billion of its outstanding common stock. The authorization commenced immediately, without a set end date. The new buyback authorization has superseded the earlier repurchase plan, under which nearly $1.5 billion in common shares remained. Management may choose to repurchase shares through open market purchases, private negotiations, or Rule 10b5-1 plans. However, Truist is not committed to purchasing a specific amount or number of shares under the program; the program can be adjusted or discontinued at any time.
In another corporate update, the bank announced on December 18 that it is introducing electronic direct deposit switching features, which will further simplify and quicken the account opening process for clients. This new feature was designed in collaboration with Atomic and is fully integrated into Truist’s online account-opening application. It allows users to transfer direct deposits from other accounts, and since its roll-out in August, 19% of the latest digital account clients have officially adopted the feature.
Truist Financial Corporation (NYSE:TFC) was founded in 1872, and it is based in Charlotte, North Carolina. The financial services company offers banking products like deposits, loans, and credit cards, mortgages, digital banking, commercial lending, treasury management, investment banking, and wealth management.
3. American Airlines Group Inc. (NASDAQ:AAL)
Number of Hedge Fund Holders: 43
Appaloosa Management’s Stake Value: $103,970,000
American Airlines Group Inc. (NASDAQ:AAL) is among the new stocks David Tepper has bought. As of December 29, the average price target for AAL suggests an upside of 4%; however, the Street high indicates an upside of 30%. In Q3 2025, David Tepper opened a new position in AAL, buying nearly 1.4 million shares worth $104 million.
On December 18, Wells Fargo initiated coverage of American Airlines Group Inc. (NASDAQ:AAL) with an Equal Weight rating and a $17 price target. The firm said that the airline’s new co-branded card deal and upgraded cabins were positive drivers for the stock, although these advantages seemed to be countered by higher debt and the requirement for premium service enhancements.
Wells Fargo noted that AAL is set to significantly strengthen under its exclusive Citi co-brand agreement in 2026, with cash remuneration expected to increase annually by 10% to approach $10 billion by 2030.
American Airlines’ pre-tax income is projected to increase by $1.5 billion, or $1.70 per share, versus the previous twelve months ending Q3 2024. Wells Fargo noted that the debut of the AAdvantage Globe credit card, which provides an above-average 90,000 point promotional bonus along with new card features, should drive high-margin mileage sales from 2026 onwards.
Separately, a Reuters report dated December 17 noted that American Airlines is now focusing on premium upgrades on its flights to capture the luxury travel segment and win back passengers from competitors such as Delta and United Airlines. AAL is adding the new Boeing 787-9 and Airbus A321XLR aircraft to its fleet in order to offer a better travel experience on international routes. However, analysts note that tensions with labor unions are rising, Boeing is notorious for deliveries being later than scheduled, and employees are frustrated with low morale and a lack of accountability by the leadership.
2. Fiserv, Inc. (NASDAQ:FISV)
Number of Hedge Fund Holders: 83
Appaloosa Management’s Stake Value: $119,260,250
Fiserv, Inc. (NASDAQ: FISV) is among the new stocks David Tepper has bought. As of December 29, the average price target for FISV suggests an upside of 19%; however, the Street high indicates an upside of 56%. According to Q3 13F filings, the billionaire owned 925,000 shares of Fiserv valued at $119.3 million.
On December 22, Mizuho analyst Dan Dolev maintained an Outperform rating on Fiserv and trimmed the price target on the shares from $110 to $100. Mizuho adjusted targets in the payments and IT space to account for the latest macro changes and management chatter from investor conferences.
Previously, on December 17, Fiserv concluded its acquisition of StoneCastle Cash Management, enhancing the company’s capacity to provide insured deposit funding. This acquisition consolidates StoneCastle’s institutional deposit network with Fiserv’s solutions, which facilitate account processing, online banking, and payments platforms. This will help financial services companies maximize liquidity and boost balance sheets, in addition to offering alternative investment vehicles. It will also open more funding routes for banks and financial institutions. Meanwhile, StoneCastle’s current clients, including wealth managers, will mutually benefit from Fiserv’s banking relationships.
Fiserv, Inc. (NASDAQ:FISV) is a Wisconsin-based fintech company offering account processing, digital banking, payment services, e-commerce solutions, merchant services, and cloud-based point-of-sale systems.
1. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 115
Appaloosa Management’s Stake Value: $153,700,500
Advanced Micro Devices, Inc. (NASDAQ: AMD) is among the new stocks David Tepper has bought. As of December 29, the average price target for AMD suggests an upside of 34%; however, the Street high indicates an upside of 77%. In Q3 2025, David Tepper purchased 950,000 shares of AMD valued at $153.70 million, making it the billionaire’s largest new position during Q3.
Since December 15, the market has been abuzz with speculation that Samsung could potentially strike a deal with AMD to provide 2nm AI chips. This comes in light of the N-2 rule likely hindering Taiwan Semiconductor from manufacturing its most complicated nodes abroad. Reports suggest that Samsung’s Executive Chairman, Lee Jae-yong, had a meeting with AMD CEO Lisa Su as well as other Big Tech executives, to discuss the company’s foundry business and consequent business arrangements. The 2nm chipsets could power AMD’s CPUs in the future, and a deal with Samsung could be closed in January 2026.
Separately, Piper Sandler maintained an Overweight rating on Advanced Micro Devices on December 15, with a $280 price target, representing 33% upside from current levels. Overall, Wall Street analysts had a consensus Strong Buy rating on the stock. Piper remained optimistic about AMD’s short- and mid-term drivers, particularly noting the company’s ability to meet technical targets such as the MI300 series ramp and technical progress for the MI400 series rollout. Analysts also expect further sales growth this year.
The firm also told investors that AMD is putting notable resources into the Helios rack, which is slated for release in mid-2026. The company intends to widen its clientele beyond OpenAI, even though part of its new business is expected from that partnership. Piper Sandler noted that AMD’s finances seem to be sorted, and it can fund its development plans.
While we acknowledge the potential of AMD to grow, 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 AI stock that is more promising than AMD and that has 100x upside potential, check out our report about this cheapest AI stock.
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