What happened
Dan Loeb's Third Point eliminated its remaining Nvidia and Broadcom common-share positions during Q2, as shown in its August 14 Form 13F. The prior stakes of about 190,000 Nvidia shares and 50,000 Broadcom shares were gone by June 30.
Why it matters
The sale is a striking AI-chip headline, but both stocks were small parts of a reported U.S. equity portfolio worth about $4.7 billion. The filing does not say Loeb called a sector top, and other hedge funds did not broadly follow—Insider Monkey counted 285 funds holding Nvidia in Q2, up from 275.
What to watch
Third Point also exited Meta and several semiconductor-related holdings while keeping other tech exposure. The public document can't separate valuation discipline from risk reduction or a new opportunity, so the zero positions should be read as a dated fact, not a forecast.
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Third Point's exit from Nvidia and Broadcom came after Nvidia's operating case remained exceptionally strong: fiscal Q2 revenue more than doubled to $96.2 billion, with data centers contributing $89 billion. The bear case includes capital spending, customer financing, export restrictions, and high expectations. Broadcom's different AI exposure through custom accelerators and networking carries its own risks, including VMware integration and customer concentration.
The filing suggests the sales may reflect portfolio construction or opportunity cost rather than a unified industry view, especially since Third Point also exited Meta and other semiconductor holdings. With Nvidia short interest at just 1.23% of float, market sentiment appears cautiously positive. The evidence does not confirm a sector top call.
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