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Global gross domestic product is projected to increase by 26% by 2030 due to advancements in artificial intelligence (AI), according to estimates from PwC. Significant investment is flowing into the AI sector, with companies focusing on hardware and solutions to gain competitive advantages.
Billionaire investor David Tepper of Appaloosa has significantly reduced his holdings in major AI graphics processing unit (GPU) manufacturers Nvidia and Advanced Micro Devices (AMD), selling 97% of his shares in Nvidia and entirely divesting from AMD by March 31, 2025. This decision follows a period of soaring stock prices for both companies amid the AI boom, and Tepper’s fund is now looking towards new opportunities, including a 130,000-share position in AI-networking specialist Broadcom.
In fiscal 2024, Broadcom reported $51.6 billion in sales, with approximately $12.2 billion sourced from AI-related revenue, and anticipates this will rise to between $60 billion and $90 billion by fiscal 2027 due to increased demand from hyperscale customers.
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