Updated
Updated · 24/7 Wall St. · Aug 16
Hedge Funds Dump Broadcom, Buy TSMC in Q2 as Alphabet Shift Fears Hit AVGO
Updated
Updated · 24/7 Wall St. · Aug 16

Hedge Funds Dump Broadcom, Buy TSMC in Q2 as Alphabet Shift Fears Hit AVGO

3 articles · Updated · 24/7 Wall St. · Aug 16

Summary

  • Q2 13F filings showed major hedge funds rotating out of Broadcom and into Taiwan Semiconductor, with Third Point and Duquesne exiting Broadcom while adding to TSMC.
  • 322,500 shares were added by Appaloosa to lift its TSMC stake to 1.65 million, while Third Point bought 185,000 and Duquesne 94,400; Tepper was the lone manager to also open a 150,000-share Broadcom position.
  • Broadcom has lagged the chip rally, falling 8.13% in the past week after SemiAnalysis research fueled concern that Alphabet is shifting some custom-chip work toward AMD and MediaTek.
  • That pressure comes despite Broadcom reporting $22.2 billion in Q2 FY2026 revenue and forecasting $16 billion in Q3 AI silicon sales, while TSMC raised 2026 growth guidance to slightly above 40% and lifted capex to $60 billion-$64 billion.

Insights

Why are billionaire investors suddenly dumping Broadcom to bet hundreds of millions on a single AI chip bottleneck?
Could the massive hedge fund pivot toward TSM signal a dangerous over-reliance on one vulnerable link in the AI supply chain?