Billionaire Philippe Laffont Has a New No. 1 AI Stock After Selling Shares of Nvidia and Meta Platforms

By Sean Williams – Feb 24, 2026 at 4:06AM ESTKey PointsForm 13Fs allow investors to see which stocks Wall Street's brightest money managers bought and sold in the latest quarter. Coatue Management's billionaire boss pared down stakes in Nvidia and Meta Platforms during the fourth quarter -- a common theme over the last three years.Meanwhile, Laffont purchased nearly 557,000 shares of his fund's new top holding, which is enjoying insatiable demand for its services, courtesy of the AI revolution.We’re bullish on these 10 stocks ›NYSE: TSMTaiwan Semiconductor ManufacturingMarket Cap$1.9TToday's Changeangle-down(-0.17%) $0.61Current Price$369.93Price as of February 23, 2026 at 3:58 PM ETThe new apple of Laffont's eye holds a sustainable competitive advantage within the artificial intelligence (AI) infrastructure arena.There's nothing more valuable on Wall Street than data. One week ago, on Feb. 17, institutional investors with at least $100 million in assets under management filed Form 13F with the Securities and Exchange Commission. A 13F offers investors a snapshot of the stocks Wall Street's smartest money managers purchased and sold in the latest quarter. Investors often pay close attention to 13F filings from billionaire investors, including Philippe Laffont of Coatue Management. Laffont has an affinity for companies at the forefront of game-changing technologies, such as artificial intelligence (AI). But he's not always a buyer of AI stocks, as the selling activity in Nvidia (NVDA +0.79%) and Meta Platforms (META 2.81%) during the fourth quarter showed. Image source: Getty Images. Although Nvidia or Meta have been Coatue's top holding in 10 of the last 12 quarters, there's a new No. 1 AI stock in Laffont's $40 billion portfolio.

Billionaire Philippe Laffont has been persistently paring down stakes in Nvidia and Meta Platforms According to Coatue Management's 13F, its billionaire boss sold 667,405 shares of Nvidia and 253,768 shares of Meta during the fourth quarter. But paring down these two positions has been a common theme. Laffont's stake in Meta has been reduced by 53% (4,279,854 shares) since March 30, 2023, while his fund's position in Nvidia has been slashed by 82% (40,598,682 split-adjusted shares) over the same period. ExpandNASDAQ: NVDANvidiaToday's Change(0.79%) $1.49Current Price$191.31Key Data PointsMarket Cap$4.7TDay's Range$189.58 - $193.9552wk Range$86.62 - $212.19Volume6.2MAvg Vol171MGross Margin70.05%Dividend Yield0.02% While both companies offer well-defined competitive advantages -- Nvidia's graphics processing units (GPUs) provide superior compute capabilities and Meta's social media assets are unmatched -- their respective shares have delivered outsize returns. Since the start of 2023, shares of Nvidia and Meta have skyrocketed by approximately 1,200% and 445%, respectively. Laffont has demonstrated a willingness to cash in his chips when presented with the opportunity. It's also possible that Coatue's billionaire investor is worried about a potential AI bubble. Every next-big-thing trend over the past three decades has endured an early stage bubble-bursting event, triggered by investors grossly overestimating the adoption and/or optimization of a game-changing technology. Although demand for AI infrastructure is robust, it'll likely take years before companies optimize AI solutions to boost their bottom lines. Image source: Getty Images.

Meet Coatue Management's new No. 1 AI stock: Taiwan Semiconductor Including the purchase of 556,988 additional shares during the fourth quarter, world-leading chip fabricator Taiwan Semiconductor Manufacturing (TSM 0.17%) is Laffont's new top holding (and No. 1 AI stock). Taiwan Semiconductor, commonly known as "TSMC," has undoubtedly benefited from the rise of AI. It's been expanding its monthly chip-on-wafer-on-substrate capacity at a breakneck pace to accommodate the insatiable demand for high-bandwidth memory packed with high-performance GPUs. As long as GPU demand outpaces supply, TSMC's backlog and pricing power should be robust. ExpandNYSE: TSMTaiwan Semiconductor ManufacturingToday's Change(-0.17%) $-0.61Current Price$369.93Key Data PointsMarket Cap$1.9TDay's Range$366.48 - $373.3652wk Range$134.25 - $380.00Volume496KAvg Vol13MGross Margin59.02%Dividend Yield0.83% The great thing about TSMC is that it's more than just an AI stock. It's also a leading provider of wireless chips used in next-generation smartphones, along with advanced chips for Internet of Things devices and automobiles. While these other segments aren't growing as swiftly as its AI-related operations, they nevertheless provide a solid floor and steady cash flow for the company.

Billionaire Philippe Laffont is likely also enticed by TSMC's valuation. The company's forward price-to-earnings ratio of 21 is reasonably cheap if it meets or exceeds consensus sales growth of 31% this year and 24% in 2027.Read NextFeb 23, 2026 •By Geoffrey SeilerThe Smartest Growth Stocks to Buy With $1,000 Right NowFeb 23, 2026 •By Dan CaplingerYou Can't Afford Not to Know More About This Unseen AI Stock GiantFeb 21, 2026 •By Keithen Drury1 Company Set to Make a Fortune from the $650 Billion Data Center BuildoutFeb 20, 2026 •By Keithen DruryThe Best Stocks to Buy With $10,000 Right NowFeb 19, 2026 •By Patrick SandersWhere Will TSMC Stock Be in 3 Years?Feb 17, 2026 •By Jennifer Saibil3 Tech Stocks That Could Help Set You Up for LifeAbout the AuthorSean Williams is a data-driven Motley Fool contributing analyst who's been investing for 27 years and has penned north of 15,000 articles. You'll find him at the intersection of politics and investing tackling macroeconomic topics of interest (Social Security and Donald Trump's economic/tax policies), analyzing which stocks billionaire investors (e.g., Warren Buffett) are buying and selling, and digging into how the world's most-influential businesses and trends -- everything from the evolution of artificial intelligence (AI) to the next stock split -- are changing Wall Street. He holds a B.A. in Economics from the University of California, San Diego.TMFUltraLongX@AMCScamStocks MentionedTaiwan Semiconductor ManufacturingNYSE: TSM$369.93 (0.17%) $0.61NvidiaNASDAQ: NVDA$191.31 (+0.79%) $+1.49Meta PlatformsNASDAQ: META$637.25 (2.81%) $18.41*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.