Billionaire Philippe Laffont buys $120 million worth of TSMC stock due to strong growth potential
From Nasdaq: 2025-02-22 07:03:00
In the latest 13F filings, billionaire Philippe Laffont’s Coatue Management bought $120 million worth of Taiwan Semiconductor Manufacturing (TSMC) stock, making it their third-largest position at nearly $2 billion. TSMC is the world’s largest contract chip manufacturer, serving tech giants like Nvidia and Apple, and expects a 45% CAGR in AI-related chips over the next five years.
Despite TSMC’s promising growth outlook, its stock has only risen by under 3% in 2025, making it undervalued based on its 22.4 times forward earnings valuation. With a projected 20% revenue CAGR, the market underestimates TSMC’s potential, presenting an excellent buying opportunity. Billionaires like Laffont recognize this and are increasing their stakes in the company.
Investors should consider buying shares of TSMC before they take off, as the stock is primed for significant growth in the AI arms race. The Motley Fool Stock Advisor team has identified TSMC as a top stock for investors to watch, offering potential monster returns in the coming years. With a history of outperforming the S&P 500, TSMC is a strong buy for those looking to capitalize on the semiconductor industry’s growth. 1. The stock market soared today, with the S&P 500 reaching a record high of 4,000 points. Tech stocks led the way, with Apple and Amazon both seeing significant gains. Experts attribute the surge to positive economic data and hopes for a strong recovery post-pandemic.
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Read more at Nasdaq: Billionaire Philippe Laffont Just Loaded Up on My Favorite Artificial Intelligence (AI) Stock