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

The post Forget Nvidia: Four Billionaires Who Rarely Agree on Anything Hold the Same Overlooked Chip Stock appeared first on 24/7 Wall St..

Four billionaire portfolio managers who almost never end up on the same side of a trade quietly converged on 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 at $1.04 billion. David Tepper boosted his stake alongside other chip names. Stanley Druckenmiller trimmed but holds, and Daniel Loeb’s Third Point kept TSM at roughly 5.9% of the portfolio. over 200 hedge fund portfolios held the stock at quarter-end.

Coleman is a growth investor, Tepper is a distressed-credit opportunist, Druckenmiller is a macro tactician, and Loeb is an activist. They share almost no temperamental DNA. They now share the same idea.

What the four billionaires like

The thesis sits in plain sight. NVIDIA (NASDAQ:NVDA) Q1 fiscal 2027 revenue ran $253.49 billion on a trailing basis, Broadcom (NASDAQ:AVGO) AI semiconductor revenue jumped 143% year over year to $10.8 billion last quarter, and AMD (NASDAQ:AMD) data center segment grew 57% to $5.78 billion. Every one of those chips, the H-series, Blackwell, the Instinct MI450, Broadcom’s custom XPUs, gets fabricated at one company. Taiwan Semi fabricates the silicon the rest of the AI supply chain depends on.

And it does so profitably. Operating margin reached 58.1%, return on equity 36.2%, and quarterly earnings grew 58.4% year over year. May 2026 revenue hit a record NT$416.975 billion and surpassed the March mark. CEO C.C. Wei told investors that “global chip supply would still fall short of demand for years to come.”

The valuation gap nobody talks about

The four billionaires presumably noticed this. TSM trades at a forward P/E of 27x. NVIDIA trades at 23x forward, but on a price-to-sales basis NVIDIA fetches 19.55x while Taiwan Semi sits at a fraction of that. AMD carries a P/E of 192x. So the company supplying all of them earns the fattest operating margins in the group and still gets the lowest multiple on sales.

Performance has begun closing the gap. TSM is up 52.73% year to date and 118.64% over the trailing year, which outpaces NVIDIA’s 45.01% and Broadcom’s 65.03% over the same stretch. Even after that run, the multiple discount persists.

Why retail should care, and what to watch

For a retirement-focused investor, the appeal is that you stop guessing which AI accelerator wins. Whether the inference race goes to NVIDIA’s Blackwell, Broadcom’s custom silicon, or AMD’s MI450, Taiwan Semi books the wafer revenue regardless. Wafer revenue itself grew from NT$714 billion to NT$968 billion year over year.

The risks are real and they explain the discount. The top ten customers represent 84% of accounts receivable. A strengthening New Taiwan dollar erodes reported margins. Taiwan sits 110 miles from China, and U.S. export reviews on advanced AI chips remain live policy. The U.S. investment tax credit on Arizona fabs was lifted from 25% to 35% effective January 1, 2026, which offsets some geographic concentration, but not all of it.

The four billionaires bought anyway. The thesis is defensible. It comes down to owning the monopoly behind the AI arms race at a multiple lower than the customers it serves. If the multiple alone re-rated toward NVIDIA’s price-to-sales territory, the math would do the rest. That is worth understanding before deciding to follow.

The post Forget Nvidia: Four Billionaires Who Rarely Agree on Anything Hold the Same Overlooked Chip Stock appeared first on 24/7 Wall St..