Billionaire David Tepper Shifts Focus to TSMC, Reducing Stakes in Broadcom and Meta

Billionaire investor David Tepper of Appaloosa Management has made a strategic pivot in his portfolio, significantly increasing his stake in Taiwan Semiconductor Manufacturing Company (TSMC) while reducing positions in Broadcom and Meta Platforms. The MOVE underscores Tepper's conviction in TSMC's critical role in the global AI infrastructure.

Tepper added 755,000 shares of TSMC in Q2 2025—a 279.6% increase—positioning himself at the center of the AI chip supply chain. TSMC's dominance in producing advanced semiconductors for tech giants like Nvidia, Apple, and Meta makes it an indispensable player in AI scalability. "Chip supply is the bottleneck," the market seems to agree, as TSMC continues to wield pricing power.

The divestment from Broadcom and Meta suggests Tepper sees near-term limits despite their AI exposure. Broadcom’s custom AI chips and Meta’s data center ambitions now take a backseat to TSMC’s foundational leverage. This reallocation reflects a broader institutional trend: betting on enablers rather than end-users of AI growth.