George Soros Boosts Stake in Tesla, Opens $35M Position in Broadcom in Q4 Despite Macro Headwinds

George Soros, renowned for his successful investment track record and for famously breaking the Bank of England, has made a significant move into the autonomous vehicle sector. Soros gained popularity in 1992 when he made a profit of $1 billion from short-selling the British Pound. Beyond his investment prowess, Soros has committed over $32 billion to charitable causes through the Open Society Foundations.

Soros established his hedge fund, Double Eagle, in 1969, which delivered average annual returns of close to 30% until 2000. Over the years, the fund's name evolved, and in 2011, it transitioned into a family office, returning outside capital to investors and focusing on overseeing Soros's personal wealth.

Soros' Bet on Broadcom

In Q4, Soros Fund Management (SFM) purchased 102,379 shares of Broadcom for over $35.4 million, according to the latest 13F-HR regulatory filing. The chipmaker has faced multiple headwinds this year amid growing uncertainty over US export licenses for AI chips to China. The US government extended reviews for exports, leading several Chinese clients to delay purchase orders.

Soros could like Broadcom's dominant position in the AI semiconductor market, as AI chip revenue soared 74% from a year earlier to $6.5 billion in Q4. Management even guided for $8.2 billion in Q1, implying a solid 100% growth. The robust revenue could be attributed to demand for custom AI accelerators.

Broadcom often makes headlines for its leading role in merchant silicon for ultra-fast switching and routing products, as well as custom accelerators. According to analysts, AI semiconductor sales could account for more than 50% of the company's total revenue by the end of 2026.

Meanwhile, total revenue could rise by 52% in fiscal 2026, driven by AI and infrastructure software from the VMware acquisition. With companies such as Google and Meta planning significantly higher AI capital expenditure this year, Broadcom's custom chip pipeline positions the company for continued growth.

Renewed Interest in Tesla

SFM also purchased more than 50,000 Tesla shares for over $20 million in Q4, despite falling share prices amid a major sales pullback in Europe caused by fading incentives and stiff competition from automakers such as Volkswagen and China's BYD.

Tesla's revenue continues to decline amid reduced vehicle deliveries, while capital expenditures for AI and robotics projects have escalated. A leadership reshuffle in global sales, coupled with bearish retail sentiment regarding execution risks for robotaxis, has further pressured the stock.

However, Soros's Tesla investment may be based on the EV maker's ongoing transition into an AI and robotics giant, which could drive share prices higher in the near term. The company is investing heavily in AI initiatives, including unsupervised full self-driving software, the Cybercab robotaxi and the Optimus humanoid robot.

Wedbush analyst Dan Ives believes Tesla robotaxis will be launched in more than 30 US cities within the year, with the AI and autonomous opportunity for Tesla valued at $1 trillion alone. The brokerage added that Tesla is positioned to capture around 70% of the global autonomous market over the next decade, while full self-driving penetration could rise to more than 50% in the future.

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