TSMC

TSM

Market cap $1.94T

Philippe Laffont is looking beyond the big chipmakers to find opportunities in artificial intelligence. These three companies all provide essential tools and services supporting the AI boom.

Taiwan Semiconductor dominates the foundry market with 72% market share. Almost every major tech hardware player contracts with Taiwan Semiconductor to produce chips.

Nvidia and TSMC have led the AI revolution thanks to their key positions in their respective semiconductor niches. However, one of these companies looks better positioned to capitalize on the semiconductor market's growth.

Tepper has a huge stake in Alphabet. His hedge fund got in early on the Micron rally.

For 2025, we underperformed the Benchmark, while to a lesser extent also trailing our all-cap international growth Proxy Benchmark. The underperformance was in our view attributable to an abrupt but material correction in several holdings over the potential exposure of quality growth franchises to AI disruption. Lundin Mining Corporation shares rose meaningfully during the fourth quarter after the company raised its 2025 copper production outlook and lowered its cash cost guidance.

TSMC's role as the biggest semiconductor foundry puts it in a terrific position to capitalize on the AI spending boom. ASML makes the machines that help TSMC make advanced AI chips, and that could help the Dutch giant deliver better-than-expected results.

Stocks like SANM, ATRO, TSM and FLR are seeing price strength and have a high chance of carrying the momentum forward.

TSMC does not break down AI chip revenue explicitly, but the numbers imply it is coming close to matching that predicted growth. The company's financials results appear to ease concerns over the company's geopolitical risks.

Quarterly-filed Form 13Fs let investors track the stocks Wall Street's savviest money managers have been buying and selling. Billionaire Stephen Mandel sent more than 1.3 million shares of Meta Platforms to the chopping block in the fourth quarter -- and profit-taking may not explain the whole story.

Alphabet's shares rose 28.9% (and 65.5% for the year) on strength in the company's core businesses, as well as accelerating growth in Google Cloud and Other Bets. Taiwan Semiconductor contributed to performance during the quarter with shares up 9.0% and up 55.5% in 2025, driven by robust demand for AI chips. Broadcom is strategically positioned at the intersection of high-performance AI compute and networking infrastructure while also demonstrating disciplined execution in software.