Markets· August 16, 2026 at 10:13 p.m.
Hedge Funds Rotate Out of Broadcom and into Taiwan Semiconductor
Key takeaways
- Hedge funds are rotating out of Broadcom and into Taiwan Semiconductor
- David Tepper's Appaloosa added shares in Broadcom in the same quarter
- Taiwan Semi is up 41% year-to-date and 78.82% over one year
Three major hedge funds, including Appaloosa, Third Point, and Duquesne Family Office, have sold their shares in Broadcom (AVGO) and bought shares in Taiwan Semiconductor Manufacturing (TSM). This shift is significant as TSM has gained 41% year-to-date compared to AVGO's 8% single-week drop. The funds' moves suggest a preference for process equipment over legacy chips, with some managers like Stanley Druckenmiller exiting Intel and Micron while adding positions in Lam Research, AMD, Entegris, and Rambus.
