Billionaire Stanley Druckenmiller Sells Broadcom Stock and Buys an Overlooked Stock Up 6,910% Since Its IPO

• Broadcom is benefiting from request for artificial quality (AI) infrastructure owed to its beardown marketplace presumption successful networking solutions and application-specific integrated circuits (ASICs).

• MercadoLibre operates the largest commerce and fintech ecosystem successful Latin America, and the institution is making astute investments successful its logistics and recognition businesses that should reenforce its dominance.

• 10 stocks we similar amended than Broadcom ›

Billionaire Stanley Druckenmiller was 1 of the astir palmy hedge money managers successful history, generating returns of 30% annually implicit 3 decades without a azygous down year. He closed his hedge money successful 2010, and present exclusively manages his ain wealth done Duquesne Family Office.

In the 3rd quarter, Druckenmiller sold his full involvement successful Broadcom (NASDAQ: AVGO) and bought shares of MercadoLibre (NASDAQ: MELI), a banal often overlooked by investors contempt returning 6,910% since its 2007 IPO.

Druckenmiller is an fantabulous root of inspiration, but the trades mentioned supra took spot successful the 3rd quarter, which ended respective months ago. Here is simply a much existent look astatine Broadcom and MercadoLibre.

The concern thesis for Broadcom centers connected its beardown beingness successful networking chips and application-specific integrated circuits (ASICs). The institution builds the fastest Ethernet switching and routing chips, and it holds implicit 80% marketplace share. The buildout of artificial quality (AI) infrastructure should thrust request for high-speed networking platforms successful the coming years.

Additionally, Broadcom is the starring supplier of customized AI accelerators, sometimes called ASICs. The institution has agelong designed AI chips for Alphabet's Google and Meta Platforms, but its clientele has much precocious expanded to see TikTok genitor institution ByteDance, OpenAI, and Anthropic. The institution besides has different large customers successful the pipeline, including Apple and xAI.

Broadcom reported beardown fiscal results successful the 4th fourth of fiscal 2025 (ended successful November), beating estimates connected the apical and bottommost lines. Revenue accrued 28% to $18 billion, driven by peculiarly beardown request for AI semiconductors. Meanwhile, non-GAAP nett income accrued 37% to $1.95 per diluted share.

Importantly, Broadcom's customized AI accelerators vie with Nvidia GPUs arsenic the engines that powerfulness grooming and inference workloads successful information centers. ASICs are mostly cheaper, which has led to robust request from definite hyperscale customers. "We spot momentum continuing successful Q1 and expect AI semiconductor gross to double," CEO Hock Tan said successful the property release.