Appaloosa Management sold its entire Sandisk stake and initiated a position in Broadcom amid rising AI-driven demand for chip stocks.
Billionaire investor David Tepper’s hedge fund Appaloosa Management sold its entire stake in Sandisk (NASDAQ: SNDK) during the second quarter, according to recent 13F filings. The fund simultaneously initiated a new position in Broadcom (NASDAQ: AVGO), signaling a strategic pivot toward AI-focused chip stocks.
Sandisk, a producer of NAND flash memory, has seen surging demand from AI data centers, driving revenue and margin expansion. Tepper’s fund had held the position since the first quarter of 2026 before exiting entirely. The move reflects broader investor interest in AI infrastructure plays.
Broadcom, a leader in semiconductor and AI chip technology, has emerged as a key beneficiary of the AI boom. Appaloosa’s shift underscores the growing preference for trillion-dollar market cap chipmakers in the current AI-driven market cycle.