Appaloosa Management, the hedge fund led by Carolina Panthers owner David Tepper, significantly increased its investment in American Airlines Group (AAL) during the fourth quarter of 2025, according to recent regulatory filings. The firm boosted its stake in the airline by nearly 53%, a move that contrasts with simultaneous reductions in holdings of semiconductor companies Nvidia (NVDA) and Advanced Micro Devices (AMD).
The increased bet on American Airlines comes despite ongoing financial challenges facing the carrier, as indicated by a low Altman Z-Score, which suggests potential financial distress. Appaloosa’s move signals a contrarian investment strategy, focusing on an airline that, while a major player in the U.S. And Latin American markets, operates in a cyclical and often volatile industry.
While increasing its position in American Airlines, Appaloosa Management trimmed its stake in Nvidia and AMD. This shift in portfolio allocation suggests a re-evaluation of the technology sector, potentially driven by concerns over valuation or future growth prospects. The fund had previously established new positions in both AMD and Nvidia during the third quarter of 2025, according to filings from November 2025.
Appaloosa’s third-quarter activity also included taking new positions in Whirlpool, Goodyear Tire & Rubber and American Airlines, while exiting positions in Intel. The Intel stake was described as a short-term trade, with the fund taking a position in the second quarter and liquidating it in the third. During the third quarter, the fund also reduced its holdings in Alibaba, though the Chinese e-commerce giant remained Appaloosa’s largest single position, representing 16% of the fund’s overall holdings.
The fund’s largest percentage increase in share holdings during the third quarter was in Whirlpool, building upon a new position taken in the second quarter. Conversely, the largest percentage decreases were observed in several stocks that had been recently added or increased during the second quarter. These adjustments reflect a dynamic portfolio strategy, with Appaloosa actively shifting capital based on evolving market conditions and investment opportunities.
