Hedge fund Appaloosa Management, founded by billionaire David Tepper, fully exited its position in NAND flash memory maker Sandisk (NASDAQ: SNDK) during the second quarter, after initiating the stake in Q1 2026. Concurrently, the fund established a new position in AI chipmaker Broadcom (NASDAQ: AVGO). Broadcom designs custom AI accelerators (XPUs) for hyperscale customers like Google (TPUs) and Meta Platforms (MTIA chips), with management projecting over $100 billion in AI semiconductor revenue by fiscal 2027. Tepper's move reflects a strategy to secure gains from Sandisk's recent rally and reallocate capital to a company with deeper competitive advantages and longer growth potential in the AI infrastructure space.