Billionaire Stanley Druckenmiller Dumps Broadcom Before Earnings
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Billionaire Stanley Druckenmiller Dumps Broadcom Before Earnings Moz Farooque ACCA Wed, September 2, 2026 at 4:28 PM EDT 2 min read AVGO This article first appeared on GuruFocus . Broadcom ( NASDAQ:AVGO ) heads into fiscal third-quarter earnings with Wall Street expecting another explosive AI-driven quarter, but one of the market's most closely watched billionaire investors has already headed for the exits. Stanley Druckenmiller ( Trades , Portfolio )'s Duquesne Family Office sold its entire Broadcom position during the second quarter, creating an intriguing contrast between soaring AI expectations and a legendary investor becoming more selective. Warning! GuruFocus has detected 2 Warning Sign with AVGO. Is AVGO fairly valued? Test your thesis with our free DCF calculator. Broadcom designs semiconductors and infrastructure software used across networking, data centers, wireless devices and enterprise systems. Its custom AI accelerators and networking products have become increasingly important as hyperscalers build massive artificial-intelligence infrastructure. Wall Street expects Broadcom to report roughly $29.2 billion to $29.4 billion in revenue and about $3.22 in adjusted earnings per share . Revenue would rise more than 80% year over year , while Broadcom has guided for approximately $16 billion in AI semiconductor revenue , more than double the year-earlier level. Yet Druckenmiller completely sold his 195,955-share Broadcom position during Q2, just one quarter after initiating the stake. The decision came despite Broadcom's fiscal Q2 revenue jumping 48% to $22.19 billion and AI semiconductor revenue surging 143% to $10.8 billion . Druckenmiller also exited Micron and Intel while opening a position in AMD and adding Amazon and Taiwan Semiconductor, suggesting the move may represent a reshuffling of AI exposure rather than a wholesale retreat from the theme. Broadcom shares have fallen roughly 23% from their June peak , with valuation and competition in custom AI chips weighing on sentiment. Tonight's earnings could determine whether Druckenmiller's exit looks prescient or premature. Investors should focus on AI semiconductor revenue, forward guidance and custom-chip demand . A beat accompanied by another AI forecast increase could reinforce Broadcom's growth thesis and revive the stock. But with expectations already extremely high, slowing AI growth or cautious guidance would make Druckenmiller's decision considerably more interesting. Wall Street remains bullish overall, with 25 Buy ratings against four Holds and an average price target of $509.11 .
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