This AI Chip Stock Has Been Billionaire Philippe Laffont's Largest Holding Throughout 2026. Here's What $10,000 Invested Today Could Be Worth by 2030.
Key PointsPhilippe Laffont sees more value in going up the semiconductor supply chain.
Hedge fund manager Philippe Laffont's Coatue Management has been holding Taiwan Semiconductor Manufacturing (TSMC) stock for years, making it the largest position in his portfolio. TSMC is the world's leading third-party semiconductor manufacturer, providing essential equipment for other companies like Lam Research and Applied Materials, both of which were previously in Coatue's top-five holdings.
Laffont believes TSMC can offer more sustainable long-term earnings growth compared to chip designers or end customers like hyperscalers. The demand for advanced AI chips and TSMC's technology lead and capacity constraints have allowed the company to raise prices, leading to a significant increase in its market share. Analysts predict that TSMC's revenue growth could reach 25% between 2024 and 2029.
This growth, combined with strong returns on R&D spending, could result in a total return of between 52% and 90% for a $10,000 investment in TSMC by 2030.
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