Staff Reporter

David Tepper, known to many as the owner of the NFL’s Carolina Panthers, is a legendary figure in the investment world.

From 1993 to 2019, his fund, Appaloosa Management, delivered impressive annual returns exceeding 25%, net of fees, according to Institutional Investor. Now operating as a family office, Tepper remains a powerful influence in the market.

In the first quarter of 2025, filings reveal that Appaloosa cut its stake in AI chip giant Nvidia (NVDA) by more than half, while significantly increasing its investment in a standout transportation stock.

Nvidia’s Rollercoaster Ride

Nvidia has experienced a turbulent year in 2025. After a steep decline, the stock has rebounded and is currently down only 2% year-to-date. Earlier this year, several events raised red flags for investors.

Notably, China’s DeepSeek launched an AI chatbot that competes with OpenAI’s ChatGPT, reportedly using older Nvidia chips at a lower cost. This sparked concerns about the future demand for Nvidia’s products.

Despite ongoing market uncertainties, especially with rising U.S. Treasury yields, investor confidence in AI has rebounded. Nvidia now trades at a lower forward earnings multiple than earlier this year, making it an attractive option for long-term buyers looking to invest or dollar-cost average.

Uber: A Transportation Game-Changer

While offloading Nvidia, Tepper and Appaloosa more than doubled their investment in Uber Technologies (UBER).

Once a highly anticipated start-up, Uber struggled to achieve profitability for years. However, under CEO Dara Khosrowshahi since 2017, the focus shifted from rapid growth to operational efficiency.

Thanks to cost-cutting, price increases, and the expansion of profitable segments like Uber Eats, the company turned its first profit in 2023. Since then, both profits and revenue have surged, along with free cash flow.

This year, Uber has outperformed the broader market, and its stock performance over the past five years has been impressive.

Uber also aims to ride the wave of autonomous vehicles. While it won’t manufacture its own self-driving cars, the company plans to partner with leaders in the autonomous field to integrate these vehicles into its fleet.

In a fourth-quarter 2024 presentation, management identified the autonomous market as a potential $1 trillion opportunity.

However, challenges remain in commercializing self-driving technology, including regulatory hurdles and safety concerns.

Uber is already collaborating with major players like Waymo and WeRide, with plans to expand their partnership to deploy autonomous vehicles in 15 cities worldwide.

Trading at under 25 times forward earnings, Uber has the potential to enhance profitability and free cash flow while tapping into the lucrative autonomous market, paving the way for new revenue streams.

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