The Billionaire Who Sold Nvidia Too Early Just Bought 196,000 Shares of Broadcom -- Here's the Thesis Behind the Rotation
Billionaire Stanley Druckenmiller recently purchased 196,000 shares of Broadcom (AVGO) at an average price of $330, marking a new position in Q1 2026. This move follows his earlier sale of Nvidia shares, which he admitted was a mistake as Nvidia's stock surged. Druckenmiller's investment thesis likely centers on Broadcom's dominance in AI inference ASICs, with AI chip sales expected to grow fivefold by fiscal 2027. The trade highlights a rotation towards companies benefiting from the shift in AI demand from training to inference.
In late 2022 and early 2023, Stanley Druckenmiller's Duquesne Family Office built a massive stake in Nvidia (NVDA 1.42%) for a split-adjusted price of $22-24 per share. But in mid-to-late 2024, he sold his entire position at a blended average price of around $73.50.
Today, Nvidia's stock trades at about $190 per share. So even though Druckenmiller turned a $210-$220 million investment into roughly $655 million, that investment would be worth $1.7 billion today. Druckenmiller admits that selling Nvidia before the AI market exploded was a "big mistake", but he recently invested in another big AI name: Broadcom (AVGO 3.39%).
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Druckenmiller traded in and out of Broadcom in 2023, 2024, and 2025, but he wasn't holding any shares at the end of 2025. In the first quarter of 2026, he initiated a new position by buying 196,000 shares for an average price of $330. Its stock is trading at $365 as of this writing. Let's see what that investment might mean for Broadcom's long-term investors.
Why is Broadcom a compelling investment?
Unlike Nvidia, which primarily produces general-purpose data center GPUs for training large language models (LLMs), Broadcom produces application-specific integrated circuits (ASICs) customized to accelerate AI inference (software accessing the trained data).
At scale, Broadcom's AI accelerators can process AI tasks faster and more cost-efficiently than Nvidia's stand-alone GPUs. That's why Meta, Alphabet's Google, OpenAI, and Anthropic are all installing its custom ASICs.
NASDAQ: AVGO
Key Data Points
In fiscal 2025 (which ended last November), Broadcom's sales of AI chips surged 65% to $20 billion and accounted for 31% of its top line. By fiscal 2027, it expects its AI chips to rise at least fivefold to over $100 billion. That's more than 58% of its projected $171 billion in revenue.
From fiscal 2025 to fiscal 2028, analysts expect Broadcom's annual revenue to more than triple as its EPS more than quadruples. Its soaring sales of AI chips should offset the slower growth of its non-AI chip and infrastructure software businesses. Broadcom's stock still trades at just 22 times next year's earnings -- so it could still have plenty of upside potential.
What does Druckenmiller's investment in Broadcom mean?
Druckenmiller hasn't made any public comments about his investment in Broadcom. On one hand, he could be simply buying it for a short-term trade, as he did from 2023 to 2025. But on the other hand, he could finally think it's worth holding instead of trading -- especially as it profits from the AI market's shift from training to inference.
