Druckenmiller Sticks with TSMC Amid AI-Driven Growth

Legendary investor Stanley Druckenmiller still holds a significant stake in Taiwan Semiconductor Manufacturing (TSM), despite selling some shares in the first quarter of this year. The position remains the third-largest holding in the Duquesne Family Office portfolio, worth $167 million at the end of the quarter.

TSMC's recent strong quarterly performance has underscored why Druckenmiller continues to hold onto the stock. Revenue climbed nearly 34% year over year and rose 12% from the first quarter, with high-performance computing (HPC) accounting for 66% of total revenue.

Management doesn't see a near-term slowdown, projecting third-quarter revenue at about $45 billion, implying another 12% sequential gain. Full-year revenue is expected to grow more than 40% in U.S. dollars.

Nvidia and AMD's outlook also supports this momentum, with Nvidia reporting 85% year-over-year revenue growth and still expecting 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.