Billionaire investor Stanley Druckenmiller sold his entire position in Broadcom (NASDAQ: AVGO) and purchased shares in Sandisk (NASDAQ: SNDK) during the third quarter, according to recent disclosures. The move represents a shift from one semiconductor company to another.
Druckenmiller, who managed Duquesne Capital from 1981 to 2010, achieving an annual return of 30% without a single down year, now manages his personal wealth through the Duquesne Family Office. The transaction was executed in the third quarter.
Broadcom holds a dominant position in several semiconductor markets, including wireless networking, wired Ethernet networking, and application-specific integrated circuits (ASICs). The company commands approximately 75% market share in AI ASICs, custom chips designed to accelerate AI training and inference workloads. Broadcom has long designed these chips for Alphabet's Google and Meta Platforms, and has more recently begun designing custom accelerators for OpenAI and Anthropic.
Broadcom CEO Hock Tan reported that the company's AI revenue, derived from networking chips and ASICs, increased 65% to $20 billion in 2025. Analysts project significant future growth. Beth Kindig of the I/O Fund expects AI sales to triple by 2027, while Harlan Sur at JPMorgan Chase estimates they could increase more than fivefold to $110 billion by the same year.
Wall Street estimates project Broadcom's adjusted earnings will grow at an annual rate of 43% through 2027. The stock currently trades at 51 times earnings. Analysts have set a median price target of $461 per share, suggesting potential upside from its recent price of $343.
Sandisk, the company Druckenmiller bought into, manufactures data storage solutions based on NAND flash memory. Its products are used in data centers, personal computers, mobile devices, and other systems. The company operates a strategic partnership with Japanese firm Kioxia, sharing costs related to wafer fabrication and memory design.
Sandisk is the fifth-largest NAND flash memory manufacturer globally, behind Samsung, SK Hynix, Kioxia, and Micron Technologies. Management reported the company gained one percentage point of market share during the first half of 2025. Two hyperscale cloud providers recently began testing Sandisk's enterprise solid-state drives, with a third hyperscaler and a major storage OEM scheduled to begin testing in 2026.
Wall Street forecasts Sandisk's adjusted earnings will grow 79% annually through the fiscal year ending June 2029. The stock trades at 170 times earnings. During the third quarter, when Druckenmiller made his purchase, Sandisk shares averaged $58. The price has since risen significantly. The current median analyst price target is $307 per share, which is below the recent trading price of $415.
Sandisk stock has risen approximately 1,050% since it was spun off from Western Digital in February 2025.