In the final quarter of 2025, the investment fund led by billionaire George Soros made substantial adjustments to its U.S. stock holdings. The fund significantly bolstered its positions in companies manufacturing artificial intelligence (AI) chips and other large-cap technology firms, while simultaneously reducing its exposure to Alphabet. This strategic realignment suggests a pronounced confidence in the future of AI technology and the critical components that power it.
Soros Fund Management's Strategic Investment Redirection
George Soros, a figure widely recognized for his successful forays in financial markets, notably his profitable bet against the British pound in 1992, has once again demonstrated a forward-thinking investment approach. His fund, Soros Fund Management, established in 1970, exhibited a clear preference for the semiconductor and AI infrastructure sectors in the last quarter of 2025. Data compiled from 13F filings by Whalewisdom reveal that the fund substantially increased its stake in Taiwan Semiconductor (TSM) by 157%, acquiring an additional 213,766 shares. TSMC, a global leader in chip foundry, is a vital supplier for major technology companies like Nvidia, AMD, and Broadcom. This increased investment followed TSMC's robust fourth-quarter results, which showcased a 35% year-over-year rise in diluted EPS and a 25.5% increase in revenue. Furthermore, Soros Fund Management augmented its Nvidia holdings by 21.5%, adding 117,973 shares, valued at approximately $22 million as of February 18. New positions were also initiated in Broadcom (AVGO) and Advanced Micro Devices (AMD), with 102,379 and 17,201 shares respectively. Cumulatively, the fund injected about $137 million into these four prominent semiconductor companies during the fourth quarter of 2025. This move aligns with the semiconductor sector's impressive growth, which saw a more than 60% increase over the preceding year, primarily driven by the escalating demand for AI infrastructure from tech giants such as Microsoft, Alphabet, Amazon, and Meta, who collectively plan to invest over $650 billion in AI this year. Beyond semiconductors, Soros also expanded investments in several other large-cap technology firms. Amazon remained the largest holding, with a modest 6% increase, adding 133,385 shares. A significant increase of 158.53% was seen in Microsoft holdings, with 161,298 shares added, likely a 'buy-the-dip' strategy following a more than 5% decline in Microsoft's stock during the quarter. The fund also acquired 66,503 shares of Apple and initiated a new stake in Tesla by purchasing 56,661 shares. Additionally, a new position was established in Coinbase amidst a downturn in the cryptocurrency market. Conversely, the fund scaled back its investments in certain software companies and trimmed its Alphabet stake by 2.9%, selling 19,300 shares to realize profits after a 31.7% surge in the stock. Despite this reduction, Alphabet remains the fund's fourth-largest holding. Snowflake's stake was cut by approximately 65%, Datadog's was reduced, and the fund completely divested from Intuit. These divestments reflect concerns about the impact of AI tools on traditional software business models, leading to a 23% decline in the software sector year-to-date. In the healthcare sector, Soros increased his stake in UnitedHealth and initiated a new position in Eli Lilly, signaling confidence in the defensive nature and stability of healthcare investments. The fund also increased its holdings in Uber, DoorDash, and Disney.
This comprehensive portfolio adjustment by George Soros's fund underscores a significant belief in the transformative power and investment potential of artificial intelligence. It reflects a calculated shift from more traditional tech holdings towards the foundational technologies driving the next wave of innovation, especially within the semiconductor industry. Investors might consider these movements as an indicator of where smart money is flowing, suggesting that AI and its underlying infrastructure are poised for continued growth and are becoming central to strategic investment planning.