Forget Nvidia: Four Billionaires Who Rarely Agree on Anything Hold the Same Overlooked Chip Stock

Four billionaire portfolio managers who astir ne'er extremity up connected the aforesaid broadside of a commercialized softly converged connected Taiwan Semiconductor Manufacturing (NYSE:TSM).

Chase Coleman's Tiger Global added 49.38% to its Taiwan Semiconductor position. That lifted it to the fund's fourth-largest holding astatine $1.04 billion. David Tepper boosted his involvement alongside different spot names. Stanley Druckenmiller trimmed but holds, and Daniel Loeb's Third Point kept TSM astatine astir 5.9% of the portfolio. implicit 200 hedge money portfolios held the banal astatine quarter-end.

Coleman is simply a maturation investor, Tepper is simply a distressed-credit opportunist, Druckenmiller is simply a macro tactician, and Loeb is an activist. They stock astir nary temperamental DNA. They present stock the aforesaid idea.

What the 4 billionaires similar

The thesis sits successful plain sight. NVIDIA (NASDAQ:NVDA) Q1 fiscal 2027 gross ran $253.49 cardinal connected a trailing basis, Broadcom (NASDAQ:AVGO) AI semiconductor gross jumped 143% twelvemonth implicit twelvemonth to $10.8 cardinal past quarter, and AMD (NASDAQ:AMD) information halfway conception grew 57% to $5.78 billion. Every 1 of those chips, the H-series, Blackwell, the Instinct MI450, Broadcom's customized XPUs, gets fabricated astatine 1 company. Taiwan Semi fabricates the silicon the remainder of the AI proviso concatenation depends on.

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And it does truthful profitably. Operating borderline reached 58.1%, instrumentality connected equity 36.2%, and quarterly net grew 58.4% twelvemonth implicit year. May 2026 gross deed a grounds NT$416.975 cardinal and surpassed the March mark. CEO C.C. Wei told investors that "global spot proviso would inactive autumn abbreviated of request for years to come."

The valuation spread cipher talks astir

The 4 billionaires presumably noticed this. TSM trades astatine a guardant P/E of 27x. NVIDIA trades astatine 23x forward, but connected a price-to-sales ground NVIDIA fetches 19.55x portion Taiwan Semi sits astatine a fraction of that. AMD carries a P/E of 192x. So the institution supplying each of them earns the fattest operating margins successful the radical and inactive gets the lowest aggregate connected sales.