David Tepper Rotates Appaloosa Management Funds into Broadcom

David Tepper, founder of the hedge fund Appaloosa Management, exited his entire position in Sandisk during the second quarter of 2026. Tepper had only initiated the stake in the first quarter of the year before deciding to redeploy the capital into a new position in Broadcom.

This rotation marks a strategic shift away from the cyclical NAND flash memory market where Sandisk operates. Tepper instead targeted Broadcom's custom AI accelerators and networking silicon, which serve hyperscale customers including Google, Meta Platforms, OpenAI, Anthropic, and Apple.

Despite Broadcom's high valuation, the move follows guidance from the company's management projecting that AI semiconductor revenue will exceed $100 billion by fiscal 2027.