Investor Bets Shift Toward Chip Giants TSMC and ASML Amid AI Boom

Billionaire portfolio manager Philippe Laffont of Coatue Management reshaped his technology holdings in the first quarter, significantly reducing exposure to major cloud companies Amazon, Alphabet, and Microsoft, while fully exiting Oracle, Geoffrey Seiler reported for The Motley Fool.

TSMC is a key driver of global advanced chip production. (Photo: TSMC)

At the same time, he increased positions in semiconductor infrastructure companies, boosting his stake in Taiwan Semiconductor Manufacturing Co. (TSMC), his largest holding, and adding a new position in ASML Holding.

The shift reflects growing investor focus on companies that enable AI and chip production rather than just end-user platforms.

TSMC, the world’s largest semiconductor foundry, manufactures advanced logic chips for companies such as Nvidia and Apple. Its scale and high-yield production process give it strong pricing power and a dominant position in advanced chip manufacturing.

The company also leads in advanced packaging technologies, including CoWoS (Chip-on-Wafer-on-Substrate), which integrates GPUs with high-bandwidth memory (HBM), a key requirement for AI workloads.