Soros Fund Management, led by billionaire George Soros, has acquired new positions in artificial intelligence-related stocks Broadcom and Tesla, investing a combined $69 million in the fourth quarter. The moves come amid market declines for both companies, signaling confidence in their AI-driven growth prospects. This filing with the US Securities and Exchange Commission highlights Soros's continued focus on technology sectors despite geopolitical and competitive pressures.
George Soros, known for his 1992 bet against the British pound that netted $1 billion and contributed to Black Wednesday, has a reputation for sharp investing. Through his Open Society Foundations, he supports progressive causes, which has drawn criticism from conservative groups. His firm, Soros Fund Management, recently disclosed its fourth-quarter 13F filing with the SEC, revealing new stakes in AI-focused companies.
The fund purchased 102,379 shares of Broadcom (NASDAQ:AVGO) for about $35.4 million, at an average price of around $345 per share. Broadcom's stock has since fallen 5.7% to close near $325, influenced by uncertainties in US export licenses for AI chips to China and broader geopolitical tensions, including potential tariffs on European allies. Despite these headwinds, Broadcom reported $6.5 billion in AI chip revenue for the fourth quarter, a 74% increase year-over-year, with guidance for $8.2 billion in the first quarter, representing 100% growth. This growth stems from demand for custom AI accelerators from clients like Alphabet and Meta Platforms, which aim to lessen dependence on Nvidia. Analysts expect AI semiconductor sales to double in 2026, potentially comprising over half of Broadcom's revenue, with overall sales projected to rise 52% to about $94 billion, boosted by the VMware acquisition.
For Tesla (NASDAQ:TSLA), the fund bought 56,661 shares valued at roughly $25.5 million, at an average of $450 per share; the stock has declined about 7% to $417. Tesla faces challenges including a more than 40% drop in new vehicle registrations in European markets like France, the Netherlands, and Norway, due to reduced incentives and competition from BYD and Volkswagen. Recent quarterly revenue fell 2.9% year-over-year amid lower deliveries, while capital expenditures for AI and robotics are estimated at $30 billion to $70 billion. The company is advancing unsupervised Full Self-Driving software, the Cybercab robotaxi, and the Optimus humanoid robot, with production targets of 50,000 to 100,000 Optimus units in 2026 at a new Giga Texas facility. Elon Musk has stated that Optimus could account for 80% of Tesla's long-term value. Additional efforts include FSD subscriptions for recurring revenue, robotaxi deployments in Austin and the Bay Area, and a $2 billion investment in xAI, which has merged with SpaceX. Analysts project Tesla's 2026 net income at around $6.1 billion, potentially offsetting automotive weaknesses through AI pivots.
