From Nasdaq: 2024-09-17 03:06:00

Dan Loeb, founder of Third Point, has seen the firm’s flagship Offshore Fund return 13.1% annually since 1996, outperforming the S&P 500. AI is a key focus for Loeb’s investments, including 23.1% of the portfolio in AI stocks. Amazon, Microsoft, and TSMC are major holdings in Loeb’s portfolio, with strong potential for growth in AI-related businesses.

Amazon represents 11% of Dan Loeb’s portfolio with a strong presence in e-commerce and advertising. Amazon Web Services (AWS) leads in cloud infrastructure and platform services, with new AI products like Amazon Q and Amazon Bedrock driving growth. Wall Street predicts Amazon’s earnings will rise 25% annually through 2025, making the current valuation attractive for investors.

Microsoft holds an 8.4% position in Dan Loeb’s portfolio, monetizing AI in its software and cloud businesses. Azure’s collaboration with OpenAI and development of generative AI copilots are attracting new customers. While expensive at 36 times earnings, Microsoft has compelling growth prospects in the AI market.

Taiwan Semiconductor comprises 4% of Dan Loeb’s portfolio and is a leading semiconductor foundry with process technology advantages. TSMC’s ability to outspend peers on R&D leads to improvements in chip power, performance, and area, as well as higher pricing. Wall Street expects TSMC’s earnings to grow 29% annually through 2025, making the current valuation reasonable.



Read more at Nasdaq: Billionaire Dan Loeb Has 23% of His Portfolio Invested in 3 AI Stocks (Hint: Not Nvidia)