Why a $4.68 Billion Fund Dumped Nvidia and Bought Warner Bros. Instead

Dan Loeb's Third Point LLC sold every share of Nvidia Corp. (NASDAQ:NVDA) it owned during the second quarter of 2026, exiting a $33.14 million position alongside full exits from Broadcom, KLA, Lam Research, and its semiconductor ETF, the fund's 13F filing disclosed on August 14, 2026.

The capital went somewhere specific, and examining where institutional money rotates is one way to prepare yourself financially before adjusting your portfolio. 

Five semiconductor exits totaling over $96 million

Third Point's 13F for the quarter ending June 30, 2026, showed full exits from five semiconductor-linked positions, as Daniel Scrivner confirmed.

• Nvidia Corp. (NASDAQ:NVDA), $33.14 million exited.
• KLA Corp. (NASDAQ:KLAC), $16.2 million exited.
• Lam Research Corp. (NASDAQ:LRCX), $16.02 million exited.
• Broadcom Inc. (NASDAQ:AVGO), $15.48 million exited.
• VanEck Semiconductor ETF, $15.34 million exited.

The breadth of the exits is notable. Loeb did not trim one chip name or rotate within semiconductors. He removed the entire category from the portfolio, a move that suggests a deliberate thesis change rather than routine position management.

A $533 million Warner Bros. Discovery stake became the top holding

Third Point initiated a new 20 million-share position in Warner Bros. Discovery Inc. (NASDAQ:WBD), valued at $533.2 million and representing 11.4% of the portfolio, according to Seeking Alpha. WBD stock has risen roughly 138% over the past 12 months, driven by improving streaming economics.

Warner Bros. Discovery's streaming segment surpassed $3 billion in Q2 2026 revenue, growing about 10% year over year and generating $512 million in adjusted EBITDA, MarketBeat noted. Loeb's entry at this scale signals conviction that the streaming turnaround has further room to run.

Alphabet shares increased 486% to become a $366 million position

Third Point raised its Alphabet Inc. (NASDAQ:GOOG) stake from 175,000 shares to 1,025,000 shares during Q2, a 486% increase that brought the position to $366.3 million and 6.5% of the portfolio, Benzinga confirmed.

Alphabet reported Q2 2026 revenue of $119.8 billion, up 24% year over year, with Google Cloud revenue jumping 82% to $24.8 billion. Loeb appears to view Alphabet's AI and cloud trajectory as more attractive than holding Nvidia directly, a bet on the customer rather than the chip supplier.

TSMC raised 67%, and ASML raised 150% as chokepoint bets

Third Point increased Taiwan Semiconductor Manufacturing Co. (NYSE:TSM) from 275,000 shares to 460,000 shares, a 67% increase to $219.68 million, and raised ASML Holding NV (NASDAQ:ASML) from 12,000 shares to 30,000 shares, a 150% increase to $59.61 million, the 13F showed.

TSMC fabricates chips for Nvidia, AMD, Apple, and nearly every other major designer. ASML builds the lithography machines no chipmaker operates without. Loeb exited the chip designers but doubled down on the two companies that sit at the narrowest points of the supply chain, a position that benefits regardless of which designer leads next.

Meta also exited at $51.49 million alongside a gold hedge liquidation

Third Point sold its entire Meta Platforms Inc. (NASDAQ:META) stake, valued at $51.49 million, and liquidated a $40.88 million SPDR Gold position in the same quarter. The dual exit removed both a mega-cap tech holding and a traditional safe-haven hedge simultaneously.

Loeb's Meta exit came before the $1.4 trillion federal teen safety trial that opened on August 18, 2026, in Oakland, California. The timing may be coincidental, but exiting a position ahead of litigation with damages that nearly match the company's market capitalization is worth noting for your own risk assessment.

New positions in Block, Keysight, Flex, and Norfolk Southern

Loeb added six entirely new equity positions beyond Warner Bros. Discovery. Block Inc. (NYSE:XYZ) at $194.48 million, Keysight Technologies Inc. (NYSE:KEYS) at $204.79 million, and Flex Ltd. (NASDAQ:FLEX) at $166.93 million were among the largest, spanning fintech, electronic measurement, and contract manufacturing.

Norfolk Southern Corp. (NYSE:NSC) saw a 500% stake increase from 100,000 to 600,000 shares, while Capital One Financial Corp. (NYSE:COF) rose 489% from 140,000 to 825,000 shares, Benzinga noted. The rotation spread capital across financials, industrials, and infrastructure rather than concentrating in technology.

What a full Nvidia exit by a $4.68 billion fund signals for you

Loeb's move does not mean Nvidia is a bad investment. Third Point's Nvidia position was $33.14 million in a $4.68 billion portfolio, roughly 0.7% of assets. Your Nvidia exposure through an S&P 500 index fund likely represents a much larger percentage of your holdings than it did in Loeb's.

Institutional money rotating from chip designers to supply chain chokepoints, streaming turnarounds, and industrial value plays suggests a broadening thesis about where returns may come from next. Reviewing your own concentration in any single AI name is a practical step before the next earnings cycle.

Bottom line

Loeb did not simply reduce his Nvidia exposure. He eliminated every semiconductor design and equipment position in the portfolio and redirected capital toward TSMC, ASML, Warner Bros. Discovery, Alphabet, and a diversified set of industrial and financial names. The rotation shows a view that the AI trade is evolving beyond chip designers toward the infrastructure and platforms those chips serve.

Before you start investing additional capital in any direction, examining how much of your portfolio depends on a single company or sector may matter more than tracking any one fund manager's moves. Loeb's exit is one data point, but the pattern of institutional rotation away from concentrated AI bets and toward broader value plays is worth watching as 2026 earnings season continues.

This article is for informational purposes only and should not be considered investment advice.

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