Billionaire Stanley Druckenmiller has shifted his investment strategy, selling his remaining shares in Palantir Technologies and cutting his Amazon investment by more than half in the first quarter of 2023. He had previously invested heavily in chipmaker Nvidia, which benefited from advancements in generative AI, but sold those shares about a year ago, expressing regret over that decision.
Druckenmiller is now focusing on Taiwan Semiconductor Manufacturing (TSMC), which he considers undervalued despite its dominant position in the chip-making industry. TSMC anticipates doubling its AI-related revenue this year, contributing to a projected 40% compound annual growth rate for AI chips through 2029. Druckenmiller increased his investment in TSMC from approximately $20 million to one of his largest holdings in the first quarter. Currently, TSMC’s stock trades at less than 21 times forward earnings estimates.
