Stanley Druckenmiller Holds Taiwan Semiconductor After Its Q2 Beat, Betting Chip Demand From Nvidia and AMD Keeps Growing
John Ballard, The Motley Fool
Tue, August 4, 2026 at 1:05 PM GMT+3 4 min read
Legendary investor Stanley Druckenmiller sold 47,805 shares of Taiwan Semiconductor Manufacturing (NYSE: TSM) in the first quarter of 2026. After the sale, the stake was still worth $167 million at quarter-end, making it the third-largest holding in the Duquesne Family Office portfolio.
Stanley Druckenmiller is worth watching. At Duquesne Capital Management from 1981 to 2010, he delivered roughly 30% annualized returns, with a track record of spotting value early. That matters for investors looking to play the artificial intelligence (AI) boom, since TSMC is the primary chip supplier for Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD).
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
AI demand is fueling TSMC's growth
TSMC just posted another strong quarter, underscoring why Druckenmiller still holds a large position in the stock. Revenue climbed nearly 34% year over year and rose 12% from the first quarter. High-performance computing (HPC) -- which includes demand for AI accelerators -- now accounts for 66% of total revenue.
Management doesn't see a near-term slowdown. Third-quarter revenue is projected at about $45 billion, implying another 12% sequential gain, and full-year revenue is expected to grow more than 40% in U.S. dollars.
Nvidia and AMD's outlook supports that momentum. In its fiscal first quarter, Nvidia reported 85% year-over-year revenue growth and still expects cumulative Blackwell- and Rubin-related revenue of $1 trillion from 2025 through 2027. Meanwhile, AMD expects the AI accelerator market to reach $1.4 trillion by 2030, while the market for server central processing units (CPUs) tops $200 billion -- more than 50% growth over the same period.
TSM's valuation is more reasonable after the dip
In the recent Morgan Stanley Hard Lessons interview, Druckenmiller said, "What would be exciting about developing a hedge fund portfolio right now is the one thing I'm sure of -- there's massive disruption and massive change ahead."
TSMC CFO Wendell Huang echoed that sentiment recently, stating the company is "well-positioned to capture the multi-year structural demand from the industry megatrends of 5G, AI, and HPC."
Druckenmiller spotted the AI opportunity early, buying a large stake in Nvidia in 2022, which he later sold to rotate into other tech stocks. In addition to TSMC, he currently holds positions in Intel, Sandisk, and Broadcom, among others, suggesting he sees upside in CPUs, data storage, and custom AI accelerators (XPUs).
One near-term issue: TSMC is ramping up investment in next-generation chip technology, which could pressure gross margins. That could be a near-term drag on earnings, which Druckenmiller might have foreseen in the first quarter when he trimmed the position.
But the recent sell-off in TSMC makes it more attractive. The stock is trading at a reasonable 24 times forward earnings, with analysts projecting annualized earnings growth of about 35% in the years ahead. TSMC makes chips for multiple tech companies, making it one of the best stocks to profit from growing AI infrastructure spending.
Should you buy stock in Taiwan Semiconductor Manufacturing right now?
Before you buy stock in Taiwan Semiconductor Manufacturing, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Taiwan Semiconductor Manufacturing wasn't one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $386,727!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,232,139!*
That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul.
*Stock Advisor returns as of August 4, 2026.
John Ballard has positions in Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Broadcom, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
Stanley Druckenmiller Holds Taiwan Semiconductor After Its Q2 Beat, Betting Chip Demand From Nvidia and AMD Keeps Growing was originally published by The Motley Fool
Yorumlar (0)
Giriş yaparak yorum yazabilirsin.
İlk yorumu sen yaz.