David Tepper Makes Waves by Exiting Broadcom and Investing in AI Chipmaker

Key Points

• Billionaire David Tepper sold 100% of Appaloosa’s stake in Broadcom (NASDAQ: AVGO) in Q2 2023, despite strong earnings and a 64% stock increase.

• Tepper increased his investment in Nvidia (NASDAQ: NVDA) by 483%, now making it 4.3% of his portfolio, after previously selling 93% of his shares.

• Broadcom reported Q2 revenue of $15 billion, up 20% year-over-year, attributed largely to AI, while Nvidia forecasted Q2 revenue of $45 billion, indicating 50% year-over-year growth.

In Q2 2023, David Tepper’s Appaloosa Management sold all shares of Broadcom despite the company’s strong earnings report, which showed a 20% year-over-year revenue growth to $15 billion. Broadcom’s AI segment saw a significant revenue increase of 46%. Conversely, Tepper increased his stake in Nvidia by 483%, making it his seventh largest holding, as Nvidia continues to dominate the data center GPU market with a 92% market share and forecasts strong revenue growth.

Nvidia reported revenue of $44 billion for the first quarter of 2026, a 69% year-over-year increase, with projections for Q2 to reach $45 billion. Tepper’s strategic moves reflect his responsive investment tactics, as he capitalizes on Nvidia’s continued strength in AI technologies amidst market volatility.