The Motley Foolยท2025-06-05 07:51Core Viewpoint - Coatue Management's Philippe Laffont has reduced his stake in Nvidia, reallocating investments towards four leading AI stocks, which now constitute approximately 30% of the fund's assets [6][21]. Group 1: Coatue Management and Philippe Laffont - Philippe Laffont's Coatue Management had $22.7 billion in assets under management as of March [3]. - The fund's strategy focuses on growth stocks, particularly those involved in the AI sector, contrasting with value investing approaches like that of Warren Buffett [5]. Group 2: AI Stock Holdings - The top four AI stock holdings are Meta Platforms (9.5% of invested assets), Amazon (9%), Taiwan Semiconductor Manufacturing (5.8%), and Microsoft (5.4%) [7][12][17][21]. - Meta Platforms has been a leading holding for Coatue, with a stake valued at nearly $2.2 billion, benefiting from a vast user base of 3.43 billion daily active users [7][8]. - Amazon's AWS accounts for a significant 33% of global cloud infrastructure service spending, with an annual run-rate revenue of $117 billion [13]. - Taiwan Semiconductor Manufacturing is crucial for AI data centers, increasing its CoWoS capacity significantly from 35,000 to 135,000 units per month by 2026 [18]. - Microsoft is leveraging AI in its Azure platform, which has seen a 35% year-over-year growth, while also maintaining strong cash flow from legacy operations [22][24]. Group 3: Financial Strength and Investment Capacity - Meta Platforms holds over $70 billion in cash and marketable securities, allowing for aggressive investments in AI [10]. - Microsoft ended March with $79.6 billion in cash and generated $37 billion in net cash from operations in three months, enabling substantial innovation and acquisitions [24].