What makes Laffont such an intriguing fund manager to follow is his penchant for investing in the artificial intelligence (AI) space. During the second quarter, Coatue Management's 13F shows that its billionaire boss completely exited his fund's stake in Super Micro Computer (SMCI -0.89%) while concurrently piling into the face of the AI revolution. Super Micro Computer is shown the door by Coatue Management's billionaire chief According to Coatue's 13F, Philippe Laffont jettisoned more than a dozen stocks ...

Core Viewpoint - Stanley Druckenmiller has shifted his investment focus from Nvidia and Palantir to Taiwan Semiconductor Manufacturing Company (TSMC), indicating a strategic pivot within the AI sector as he seeks to capitalize on different opportunities in the technology landscape [5][15]. Investment Activity - Druckenmiller's Duquesne Family Office sold all shares of Nvidia (9,500,750 shares) and Palantir (769,965 shares) between June 30, 2023, and March 31, 2025, respectively [9][12]. - In contrast, during the March-ended quarter, Druckenmiller purchased 491,265 shares of TSMC, increasing his stake by 457% from the end of December [15]. Company Performance - Nvidia's stock has surged by 827% since the beginning of 2023, while Palantir's shares have skyrocketed by 1,920% during the same period [6]. - TSMC is integral to the production of chips for AI-accelerated data centers and is expanding its chip-on-wafer-on-substrate (CoWoS) capacity from 35,000 monthly units in 2024 to an expected 135,000 units by 2026 [16]. Market Dynamics - Nvidia faces increasing competition as many of its largest customers are developing their own AI-GPUs, which could impact its pricing power and gross margins [10]. - Palantir's valuation is under scrutiny, with a price-to-sales (P/S) ratio of 103, significantly higher than historical norms for companies leading in innovation [13]. Diversification and Risk - TSMC's operations are diversified beyond AI chips, producing components for smartphones, wireless devices, and next-generation vehicles, which may mitigate risks associated with a potential AI bubble [18]. - The company is also navigating uncertainties regarding tariffs, particularly as it maintains significant production in Taiwan despite a new facility in Arizona [19]. Valuation Considerations - TSMC's forward price-to-earnings ratio of 18 appears reasonable, but its shares are valued at over 10 times trailing-12-month sales, representing a 16% premium to its average P/S multiple over the last five years [20].