Laffont’s Portfolio Shift: TSMC Gains Prominence

Institutional investor disclosures, mandated by SEC Form 13F filings, offer a periodic snapshot of portfolio holdings and strategic adjustments made by prominent money managers. Analysis of these filings provides insights into prevailing investment theses and risk assessments within the financial community.

Philippe Laffont, managing Coatue Management, has consistently demonstrated a focus on companies positioned to benefit from disruptive technologies. Recent 13F filings reveal a recalibration of holdings within the artificial intelligence (AI) sector, characterized by both reductions in established positions and the emergence of a new lead holding.

Portfolio Adjustments in Key AI-Related Holdings

Coatue Management’s latest filings indicate a reduction in exposure to both Nvidia and Meta Platforms during the fourth quarter. While both companies have previously constituted core holdings – representing the largest position in 10 of the preceding 12 quarters – the fund has systematically decreased its stake in each.

The reduction in Nvidia holdings totaled 667,405 shares, while Meta Platforms experienced a decrease of 253,768 shares. This pattern of partial monetization represents a broader trend; since March 30, 2023, the fund’s Meta position has been reduced by 53% (4,279,854 shares), and Nvidia by 82% (40,598,682 split-adjusted shares). Such activity warrants consideration, particularly given the substantial appreciation in both stocks’ valuations.

The outsized returns generated by Nvidia (approximately 1,200% year-to-date) and Meta Platforms (approximately 445%) suggest a degree of profit-taking. However, a more nuanced interpretation must also account for potential concerns regarding sustainability of growth rates and the possibility of an overextended valuation multiple. The fund’s actions suggest a cautious approach to maintaining exposure to companies already reflecting significant market optimism.

Emergence of Taiwan Semiconductor Manufacturing as Lead Holding

Coatue Management’s latest 13F filing reveals the establishment of Taiwan Semiconductor Manufacturing (TSMC) as the fund’s largest holding. The purchase of an additional 556,988 shares during the fourth quarter solidified TSMC’s position as the lead AI-related stock within the portfolio.

TSMC’s prominence stems from its critical role in the semiconductor supply chain. As the world’s leading chip fabricator, the company is uniquely positioned to benefit from the increasing demand for advanced semiconductors, particularly those utilized in AI applications. The expansion of its monthly chip-on-wafer-on-substrate capacity reflects a proactive response to the insatiable demand for high-bandwidth memory used in conjunction with high-performance GPUs.

Beyond its exposure to the AI sector, TSMC’s diversified revenue streams – encompassing wireless chips for smartphones, Internet of Things devices, and automotive applications – provide a degree of resilience. While these segments may not exhibit the same growth trajectory as its AI-related operations, they contribute a stable base of cash flow.

The fund’s allocation to TSMC also appears to be influenced by valuation considerations. A forward price-to-earnings ratio of 21 suggests reasonable value, contingent upon the company’s ability to meet consensus sales growth projections of 31% this year and 24% in 2027. The market’s assessment of TSMC’s ability to sustain this growth will be a key factor in future performance.

In summary, the shift in Coatue Management’s portfolio holdings reflects a strategic recalibration within the AI sector. The reduction in exposure to Nvidia and Meta Platforms, coupled with the establishment of TSMC as the lead holding, suggests a cautious yet opportunistic approach to capturing the long-term potential of this transformative technology.

2026-02-24 12:13

Portfolio Adjustments in Key AI-Related Holdings

Emergence of Taiwan Semiconductor Manufacturing as Lead Holding

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