Taiwan Semiconductor (TSM) is This Famous Billionaire’s Biggest AI Stock Holding

Number of Hedge Funds: 234

Top Pick Of: Philippe Laffont — Coatue Management

Taiwan Semiconductor (NYSE:TSM) is the biggest holding of billionaire Philippe Laffont of Coatue Management.

Taiwan Semiconductor (NYSE:TSM) is simply a nonstop beneficiary of the AI boom. It controls astir 62% of the full foundry marketplace and much than 90% of precocious nodes astatine 7nm and below. Advanced nodes substance due to the fact that the smallest, astir almighty chips utilized successful AI workloads tin lone beryllium manufactured astatine these process sizes. Customers cannot power due to the fact that nary different foundry tin lucifer TSMC’s standard oregon method capableness astatine these levels. The lawsuit database tells the story. Apple, Nvidia, AMD, Qualcomm, Broadcom, MediaTek, and Marvell each trust connected TSMC for production.

The financials backmost up the dominance. In Q1, gross roseate 40.6% twelvemonth implicit twelvemonth to $35.9 billion. For the afloat twelvemonth 2026, TSMC expects gross maturation of much than 30%. Gross borderline reached 66.2% successful Q1 and operating borderline came successful astatine 58.1%. These are the numbers of a institution with existent pricing power. To conscionable rising demand, TSMC is raising superior spending to betwixt $52 cardinal and $56 cardinal successful 2026, up astir 32% twelvemonth implicit year. Global AI accelerator spending is projected to turn from $116 cardinal successful 2024 to $604 cardinal by 2033. TSMC is the ascendant shaper sitting astatine the halfway of that buildout.

Eagle Point Capital stated the pursuing regarding Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) successful its Q1 2026 capitalist letter:

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)  is beloved by investors due to the fact that it dominates the cutting borderline of their industries. But the exertion successful its tract is changing rapidly. It is unclear if it volition beryllium capable to alteration with it. They indispensable continuously disrupt and reinvent themselves earlier their competitors do. The likelihood are that yet they’ll stumble. No 1 bats 1 1000 forever. History is littered with companies, similar Intel, that looked ascendant but could not accommodate arsenic their situation changed (Click Here to Read the Letter successful Detail).

Close-up of Silicon Die are being Extracted from Semiconductor Wafer and Attached to Substrate by Pick and Place Machine. Computer Chip Manufacturing astatine Fab. Semiconductor Packaging Process.

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