Dan Loeb's Third Point Dumps Remaining Nvidia and Broadcom Stakes

Dan Loeb's Third Point hedge fund eliminated its remaining common-share positions in Nvidia and Broadcom during the second quarter of 2026, according to a Form 13F filing dated August 14. The sales covered approximately 190,000 Nvidia shares and 50,000 Broadcom shares as of June 30. The Nvidia disposal completed a larger exit: Third Point held about 2.95 million Nvidia shares at the end of 2025 and sold roughly 2.76 million in the first quarter, with the Q2 sales representing the tail end of that unwind. The exits were small relative to the fund's overall book, which the primary source places at roughly $4.7 billion in U.S. equities.

The timing is notable because Loeb had publicly praised Nvidia in June, saying the company remained undervalued despite a market capitalization above $5 trillion. The filing itself offers no explicit statement that he believes the sector has peaked. Third Point is not a buy-and-hold manager; the average holding period across its 20 largest positions was about nine months as of June 30, which supports a reading of routine portfolio management. The same filing shows the fund exiting Meta Platforms and several semiconductor-related holdings while significantly increasing its Alphabet stake and opening a large position in Warner Bros. Discovery, suggesting capital was redeployed rather than withdrawn from technology altogether.

Nvidia's operating results since the sale have remained strong. Fiscal second-quarter revenue rose 56% sequentially and 73% year over year to $96.2 billion, including $89 billion from data-center operations. Adjusted earnings of $2.22 per share beat the $2.09 consensus. Management guided to approximately $108 billion in revenue for the current quarter, above the $104.2 billion analysts had modeled. Wall Street maintains a unanimous Strong Buy rating on 30 Buy recommendations, with an average price target of $329.32 implying roughly 45% upside over 12 months. Short interest remained limited, with 285.96 million shares sold short at the August 14 settlement, equal to 1.23% of float.

Broadcom offers a different form of AI exposure through custom accelerators, networking equipment, and infrastructure software, but carries integration and leverage risk from the VMware acquisition and customer concentration in custom silicon. Risks cited for Nvidia include rising memory costs, uncertainty in China, and hyperscalers developing their own AI chips. The filing alone cannot distinguish between valuation discipline, opportunity cost, and risk reduction as the motive for the sales. Broader hedge fund positioning did not show a sector-wide exodus, and the position change should be read as a disclosed trade rather than a macro forecast.