5 Billionaire Money Managers Dumped Palantir in the Second Quarter. This Is the AI Applications Stock They're Buying Hand Over Fist Instead.

During the second quarter, eight billionaire money managers sold their holdings in Micron Technology, while a few increased investments in Taiwan Semiconductor Manufacturing, according to August 14 filed 13F filings. Despite Micron reaching a trillion-dollar market cap, billionaire investors saw ample opportunity to profit from the stock's 228% year-to-date increase, leading to potential profit-taking.

Meanwhile, Taiwan Semiconductor Manufacturing, known for its foundational role in AI data center build-outs, saw increased investments from notable investors such as Stanley Druckenmiller and Philippe Laffont. TSMC's 72% share of global contract chip manufacturing and rapid expansion of chip capacity have provided it with exceptional pricing power. However, experts warn that even in an AI bubble burst, TSMC may fare better than Micron Technology.