Overview
- Reporting on Thursday shows several prominent funds reallocated in Q2 2026 by selling SanDisk and buying Taiwan Semiconductor, with Appaloosa exiting SanDisk and lifting its TSMC stake to roughly $788 million and Duquesne trimming SanDisk while increasing TSMC by about 19%.
- TSMC’s Q2 results and guidance underpinned the moves, with $40.2 billion in revenue and a raised 2026 capex range of $60–$64 billion that management cited as evidence of durable demand tied to AI customers.
- Industry reports say TSMC has begun volume manufacturing for Xiaomi’s 3nm Xring O3 SoC and will produce additional 3nm and 6nm chips for Xiaomi, adding a commercial growth catalyst beyond hyperscaler demand.
- SanDisk’s extreme price swing drove profit-taking: the shares peaked on June 22 after a rapid 2026 rally and had fallen about 31% by mid‑August, highlighting the memory sector’s higher cyclical risk compared with foundry work.
- The rotation could shift sector flows and valuation patterns by sending more institutional capital to large, capex-backed foundries while raising scrutiny of memory companies’ near-term volatility and customer concentration; investors should watch TSMC’s hyperscaler orders and SanDisk’s execution after its August investor day.