David Tepper Exits Sandisk Position to Enter Broadcom AI Bet
Billionaire David Tepper's Appaloosa Management exited its position in Sandisk (SNDK) during the second quarter of 2026, according to a recent 13F filing. The firm had only started investing in Sandisk one quarter earlier but fully unwound it as part of a strategic shift within the AI sector. Instead of stepping back from artificial intelligence investments, Tepper moved into Broadcom (AVGO), establishing a new position worth $56.7 million and maintaining large holdings across other key players like Amazon, Micron, and Nvidia. Sandisk had experienced an extraordinary earnings surge due to rising demand for storage in AI data centers, with revenue jumping 372% year-over-year and gross margins reaching 84.6%. However, Tepper's exit suggests a belief that the memory market may be nearing peak growth or becoming more cyclical again. In contrast, Broadcom is positioned closer to hyperscale AI infrastructure through its high-speed networking equipment and proprietary accelerators. Broadcom reported $10.8 billion in AI semiconductor sales for fiscal Q2 2026—a 143% year-over-year increase—and projected even stronger growth ahead with expected Q3 sales of around $16 billion.
