Coatue Founder Laffont: Betting on Semiconductor Equipment Is His Largest AI Position
Alina Collins
Coatue Management founder Philippe Laffont, overseeing $90 billion, says his fund gains AI exposure mainly through TSMC, Lam Research, and Applied Materials — betting not on which chip wins, but on the machines that make every chip.
Why buy the chipmaking machines instead of the chip companies?
Laffont's core logic is "picks and shovels" — in a gold rush, sell the tools.
This means → Nvidia, Amazon's Trainium, Google's TPU, and new GPU entrants all need the same manufacturing equipment in the end.
In plain terms = no matter who wins the AI chip race, equipment suppliers collect either way.
Which names, specifically?
Coatue's largest holdings include TSMC, Lam Research, and Applied Materials.
They span two links in the chain: TSMC is the factory that makes the chips; Lam and Applied Materials are the companies that make the factory's machines.
This reflects a deliberate spread along the equipment → manufacturing chain, not a single-link bet.
What about Nvidia?
Laffont admitted he sold Nvidia too early, missing the stock's major rally.
He now sees Nvidia as "very cheap" after falling roughly 12% from its recent high.
This means → even a fund built around the "picks-and-shovels" thesis hasn't ruled out owning the chip leader directly.
Content is for reference only, not financial advice.