Well, the ammo as described would certianly be possible to make because it would fall outside of the federal definition of AP ammo. I would also venture to guess such ammo would actually be a much better penetrator than standard m855 ammo, and would have probably have fairly good potential as a civilian legal AP round.
So conceptually it's sound but who could tell unless you could get one and section it.
The definition of AP ammo is at 18 USC sec. 921(a)(17):
"(B) The term `armor piercing ammunition' means-
(i) a projectile or projectile core which may be used in a handgun and
which is constructed entirely (excluding the presence of traces of other
substances) from one or a combination of tungsten alloys, steel, iron, brass,
bronze, beryllium copper, or depleted uranium; or
(ii) a full jacketed projectile larger than .22 caliber designed and
intended for use in a handgun and whose jacket has a weight of more than 25
percent of the total weight of the projectile.
(C) The term `armor piercing ammunition' does not include shotgun shot
required by Federal or State environmental or game regulations for hunting
purposes, a frangible projectile designed for target shooting, a projectile
which the Secretary finds is primarily intended to be used for sporting
purposes, or any other projectile or projectile core which the Secretary
finds is intended to be used for industrial purposes, including a charge
used in an oil and gas well perforating device."