Druckenmiller, Loeb exit Broadcom, buy Alphabet in $486M AI rotation

Billionaire investors Stanley Druckenmiller and Dan Loeb both fully exited Broadcom in Q2 2026 while building combined $486 million positions in Alphabet, 13F filings show.

"Nearly 90% of the Fortune 100 are using Gemini Enterprise," Alphabet CEO Sundar Pichai said during the company's Q2 earnings call.

Alphabet reported Q2 revenue of $119.8 billion, up 24 percent year over year, with Google Cloud surging 82 percent to $24.8 billion. Cloud backlog reached $514 billion. Operating income rose 30 percent to $40.8 billion, expanding the operating margin to 34 percent. Alphabet trades at a trailing P/E of 17 with a PEG of 0.969.

The coordinated rotation from Broadcom to Alphabet reflects a shared view that platform businesses owning the full AI stack — hardware, models, and distribution — offer better risk-reward than component suppliers at current valuations. Broadcom trades at a trailing P/E of 60, while Alphabet shares sit at $345.90, down 6.75 percent over the past month despite a 70.93 percent one-year gain.

Duquesne Family Office opened a new Alphabet position of 336,300 shares valued at $120.2 million as of June 30, according to the fund's Form 13F filed Aug. 14. Third Point increased its GOOGL stake from 175,000 to 1,025,000 shares, adding 850,000 shares valued at $366.3 million, and opened positions in two additional Alphabet share classes.

The two managers also sold down other chip exposure. Duquesne exited 195,955 Broadcom shares, 23,400 Micron shares, and 411,400 Intel shares in the same quarter. Third Point sold its entire Broadcom position.

Druckenmiller's broader Q2 moves show a rotation within the semiconductor complex rather than a wholesale exit. Duquesne added 19 percent to its Taiwan Semiconductor stake, making it the fund's second-largest holding, and opened new positions in AMD, Entegris, Rambus, Equinix, and Lam Research. The fund also increased its Amazon position to nearly 3 percent of the portfolio.

The Alphabet buying extends beyond Druckenmiller and Loeb. Berkshire Hathaway added 24.5 million GOOGL shares to reach 78.8 million, valued at $28.2 billion, and also added 23.6 million GOOG shares. Seth Klarman's Baupost Group added 190,800 GOOG shares, and David Tepper's Appaloosa added 117,300 GOOG shares.

The convergence of value, macro, and event-driven investors on Alphabet at 17x trailing earnings marks a notable shift in how the market prices AI winners — away from pure chip suppliers and toward vertically integrated platforms. The trade carries risks: Q2 free cash flow turned negative at $5.86 billion, long-term debt nearly doubled to $98.2 billion, and the buyback was suspended. Alphabet also lost five top AI researchers in seven days during June, including Noam Shazeer to OpenAI. Investors will watch Alphabet's Q3 earnings for continued cloud acceleration and any update on capital expenditure plans.

This article is for informational purposes only and does not constitute investment advice.