Billionaire Investor Reveals AI Stock Play in 13F Filings

Billionaire investor Philippe Laffont's investment strategy has been revealed through Form 13F filings, which show his fund Coatue Management's portfolio adjustments over the latest quarter. In a significant move, Laffont has reduced his stakes in Nvidia and Meta Platforms by a substantial margin. However, he has increased his holding in Taiwan Semiconductor Manufacturing (TSM), a leading provider of chip fabricator for AI infrastructure.

TSMC's recent performance is closely tied to the growing demand for high-bandwidth memory packed with high-performance GPUs, driven by the rapid adoption of AI technology. As long as GPU demand outpaces supply, TSMC's backlog and pricing power are expected to remain robust. Additionally, TSMC's diversified portfolio includes wireless chips for smartphones, Internet of Things devices, and automobiles, providing a stable floor and steady cash flow.

Laffont's decision to increase his holding in TSMC may be attributed to its relatively cheap valuation, with a forward price-to-earnings ratio of 21. Furthermore, the company's consensus sales growth projections for this year (31%) and next year (24%) support its investment appeal. The market value of bitcoin is predicted to more than double to $5 trillion, according to billionaire investor predictions.