Wall Street’s Biggest Funds Are Dumping Broadcom and Adding Taiwan Semiconductor. Time to Follow the ‘Smart Money?’ - Yahoo Finance

Recent movements by major Wall Street funds have shifted significantly within the semiconductor sector, with a notable rotation out of Broadcom and into Taiwan Semiconductor Manufacturing (TSMC). Whil... Read original →

Major Wall Street funds are reallocating semiconductor positions, shifting from Broadcom to Taiwan Semiconductor Manufacturing (TSMC), signaling a strategic pivot toward advanced manufacturing capabilities. Broadcom’s recent sell-off stems from customer concentration risks and margin compression, despite strong AI sales growth. In contrast, TSMC’s 41% YTD rise reflects investor confidence in its 3nm EUV leadership and global supply chain dominance. This trend highlights a broader shift toward equipment suppliers like Lam Research and ASML, as well as design companies such as AMD. Intel and Micron are being reduced due to technological lag and competitive pressures. Looking ahead, the next 12–24 months will see intensified capacity expansion in Taiwan, China, and Hong Kong, China, driven by AI and data center demand. Design leaders like NVIDIA and AMD may gain market share, while traditional IDM players face increasing consolidation pressure. Capital is clearly favoring the ‘smart money’—those with manufacturing prowess and forward-looking technology strategies.