Broadcom Inc. (AVGO): Leopold Aschenbrenner Reveals Bearish Bet

We just covered From Fired Researcher to $13.7 Billion King: How Leopold Aschenbrenner Broke the Hedge Fund World and Broadcom Inc. (NASDAQ:AVGO) ranks 4th on this list.

Broadcom Inc. (NASDAQ:AVGO) is a new addition to the 13F portfolio of Situational Awareness LP. The fund declared a new stake in the company in filings for the first quarter of 2026. This stake consists of PUT bets worth close to 3 million shares. Previously, Leopold Aschenbrenner had bought a stake in this chip giant in the third quarter of 2025. This position consisted of PUT bets worth 230,000 shares and was sold off completely by the next quarter. In addition to Leopold Aschenbrenner, other elite money managers with bearish bets on Broadcom include Ken Griffin, Israel Englander, Sander Gerber, Matthew Hulsizer, and D.E. Shaw. The bet against Broadcom aligns with a broader bet against semis that is a central theme of the latest 13F filings by Leopold Aschenbrenner.

Broadcom Inc. (NASDAQ:AVGO) does not sell general-purpose GPUs like NVIDIA. The AI growth of the firm is driven by designing custom AI accelerators and high-speed Ethernet networking for cloud giants. This business relies heavily on a concentrated base of six major hyperscaler customers, including Alphabet, Meta, and OpenAI, for AI revenues. Even though the AI-specific backlog sits at $73 billion, pushing AI-related revenue up to 44% of the total sales mix, short-sellers have pointed out that cloud customers are using Broadcom as a stepping stone while they build out internal engineering teams to design their own proprietary custom silicon.

While we acknowledge the risk and potential of AVGO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AVGO and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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