Appaloosa Dumps Sandisk, Buys Broadcom on $100 Billion AI Chip Bet
Updated
Updated · The Motley Fool · Aug 22
Appaloosa Dumps Sandisk, Buys Broadcom on $100 Billion AI Chip Bet
3 articles · Updated · The Motley Fool · Aug 22
Summary
Second-quarter 13F filings show Appaloosa exited Sandisk entirely after buying it in the first quarter and opened a new position in Broadcom.
Sandisk's AI-driven NAND rally likely delivered quick gains, and the sale suggests David Tepper chose to lock in profits before a cyclical memory market turns more volatile.
Broadcom offers broader AI infrastructure exposure through custom accelerators for Google and Meta and networking chips that link large AI clusters.
Broadcom management has guided to more than $100 billion in AI semiconductor revenue by fiscal 2027, supporting Tepper's shift toward a longer-duration AI growth story despite rich valuation multiples.