Billionaire David Tepper Registers Minor Adjustment to Position

NRG Energy, Inc. (NYSE:NRG) is one of Billionaire David Tepper’s 10 Small and Midcap Stock Picks with Huge Upside Potential.

NRG Energy, Inc. (NYSE:NRG) first appeared in the 13F portfolio of Appaloosa Management LP back in the second quarter of 2017. This stake comprised 1.2 million shares. By the fourth quarter of 2017, the fund had increased this position to nearly 10 million shares. Thereafter, the holding was trimmed and sold off completely by early 2019. A new position was then opened in the stock in the third quarter of 2023. This comprised nearly a million shares. In the following quarter, this position was almost doubled. Filings for the fourth quarter of 2025 show that the fund owned 1.6 million shares in the company, down more than 12% compared to filings for the third quarter of 2025.

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Photo from PBF Energy LinkedIn

NRG Energy, Inc. (NYSE:NRG) is on the radar of elite hedge funds as it is a massive beneficiary of the growing electricity demand from AI and data centers. NRG has significantly expanded its data center power agreements, reaching approximately 445 megawatts of contracted capacity across key markets like ERCOT (Texas) and PJM (Mid-Atlantic). Hedge funds are tracking the company’s pipeline of potential data center projects, which has grown to over 5.4 gigawatts. A key driver of smart money interest in early 2026 was the completion of the LS Power portfolio acquisition. This deal effectively doubled NRG’s generation fleet to approximately 25 gigawatts, adding 18 natural gas-fired facilities and a commercial virtual power plant platform. Following the deal, NRG raised its 2026 financial guidance, projecting Adjusted EBITDA of $5.325 billion to $5.825 billion.

While we acknowledge the potential of NRG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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