Major hedge funds sold Broadcom shares and increased holdings in Taiwan Semiconductor amid growth and margin concerns.
Three prominent hedge funds reduced or exited positions in Broadcom (AVGO) while significantly increasing stakes in Taiwan Semiconductor (TSM) during Q2. TSM shares rose 41% year-to-date, contrasting with AVGO’s 8% decline in the past week.
Second-quarter 13F filings revealed David Tepper’s Appaloosa added 322,500 TSM shares, reaching 1.65 million shares valued at $787,990,500. Dan Loeb’s Third Point and Stanley Druckenmiller’s Duquesne Family Office also boosted TSM holdings, while fully exiting AVGO positions. Broadcom reported 48% revenue growth and 143% AI sales increase but faced fund concerns over customer concentration and 230-basis-point margin compression.
The shift reflects a broader rotation toward semiconductor equipment and advanced foundry stocks, with funds also initiating positions in LRCX, AMD, and Entegris.