Billionaire David Tepper Exits Broadcom, Bets Big on AI Chipmaker

Hedge fund titan David Tepper has liquidated Appaloosa Management's entire stake in Broadcom (AVGO), pivoting aggressively toward an undisclosed artificial intelligence chipmaker. The MOVE echoes Tepper's history of contrarian plays—most notably his 2008 recession-era bank stock wager that netted $7 billion.

Broadcom's semiconductor dominance—touching 99% of internet traffic—makes Tepper's exit particularly striking. Market observers note the AI chip sector has outpaced crypto gains this quarter, with Nvidia and AMD up 40% and 25% respectively while major coins stagnated.

The shift underscores institutional capital migrating from legacy tech to AI infrastructure plays. "When Tepper moves, Wall Street watches," said Goldman Sachs analyst Mark Delaney. "This reallocation suggests he sees greater alpha in AI hardware than in Broadcom's diversified model."