Dan Loeb’s Third Point exited its remaining Nvidia and Broadcom common-share positions during Q2, according to the firm’s August 14 Form 13F. The prior positions, approximately 190,000 Nvidia shares and 50,000 Broadcom shares, were eliminated by June 30. That makes for a striking AI-chip headline, but NVIDIA Corporation (NASDAQ:NVDA) and Broadcom Inc. (NASDAQ:AVGO) were small pieces of a reported U.S. equity portfolio worth about $4.7 billion. The filing does not say Loeb called a sector top.
Nvidia’s operating case remained exceptionally strong after the sale. Fiscal Q2 revenue more than doubled to $96.2 billion, including $89 billion from data centers, and management guided to approximately $108 billion for the next quarter without assuming China data-center compute sales. Its software ecosystem and complete systems give NVIDIA Corporation (NASDAQ:NVDA) scale that competitors have not matched. The bear case is that capital spending, customer financing, export restrictions, and enormous expectations leave little room for execution mistakes.
Broadcom offers a different AI exposure through custom accelerators, networking, and infrastructure software. Hyperscalers seeking alternatives to standard GPUs can increase demand for its application-specific chips, while networking content rises with cluster size. Broadcom Inc. (NASDAQ:AVGO) also carries integration and leverage risk from VMware, customer concentration in custom silicon, and the possibility that ambitious AI forecasts were pulled forward. Selling both companies may therefore reflect portfolio construction, valuation, or opportunity cost rather than one unified industry view.
Other hedge funds did not broadly follow Third Point. Insider Monkey counted 285 funds holding Nvidia in Q2, up from 275, while Broadcom ownership slipped to 170 funds from 173. Nvidia’s rising breadth and Broadcom’s slight decline point in different directions. Third Point’s zero positions should be treated as a dated fact, not a forecast.
Nvidia short interest was also limited. At the August 14 settlement, 285.96 million shares were sold short, 1.23% of the reported float and 2.52 days of average volume. Loeb unquestionably exited both stocks. The evidence does not establish that he rejected AI chips, especially without knowing subsequent trades or the capital redeployed elsewhere.
Third Point’s broader filing reinforces that caution. The firm also exited Meta and several semiconductor-related holdings while maintaining exposure to other technology and internet businesses. That pattern may reflect a portfolio-level decision, but the public document cannot separate valuation discipline from risk reduction, tax management, or a new opportunity. Readers should resist converting a transparent position change into an undisclosed macro call.
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