The likes of Nvidia (NVDA) and Micron (MU) remain the front and center of all AI-related debates in 2026, but billionaire investor Philippe Laffont is approaching the boom from a different angle.
Speaking recently with CNBC, the founder of Coatue Management revealed his $90 billion hedge fund prefers a classic “picks-and-shovels” strategy rather than wagering on individual chipmakers like NVDA.
His preferred means of gaining exposure to AI include TSMC, Lam Research, and Applied Materials Inc – the foundational silicon factories that every semiconductor company relies on.
Taiwan Semiconductor Manufacturing (TSMC)
Laffont owns TSMC stock for one simple reason: no matter who designs the next breakthrough AI chip, they must go through Taiwan Semiconductor Manufacturing.
For example, Amazon is deploying its custom Trainium silicon, Alphabet Inc is committed to its Tensor Processing Units (TPUs), and a wave of agile startups is entering the GPU space.
Yet, as Laffont points out, “All of them at the end of the day will need the same machines” – and almost all of them depend on TSMC’s cutting-edge foundry nodes to manufacture their silicon.
Holding a sizable stake in TSMC allows Coatue to remain agnostic in the fiercely competitive chip race while steadily capturing the rewards of a capex cycle that shows no signs of slowing down.
Lam Research (LRCX)
To build the microscopic, hyper-dense architectures required for modern AI workloads, specialized hardware is mandatory.
This reality leads Philippe Laffont directly to Lam Research Corp – an industry giant dominant in etching and deposition technology.
Modern artificial intelligence infrastructure is shifting into what the tech investor calls the “agentic era,” in which autonomous software agents execute long, multi-layered workflows.
This technological pivot needs huge amounts of high-bandwidth memory (HBM) and specialized advanced packaging – and LRCX manufactures the precise capital equipment needed to etch deep, flawless vertical pathways in advanced memory chips.
For Laffont, owning Lam Research shares provides a direct window into the physical layer of the AI ecosystem, capturing reliable revenue from every tech company building out data centers.
Applied Materials (AMAT)
Completing Laffont’s top trio of semiconductor capital equipment holdings is Applied Materials, the world’s largest supplier of tools used to fabricate advanced microchips.
As global electronics manufacturing becomes increasingly localized, AMAT shares benefit from massive structural headwinds and government subsidies.
Laffont – an MIT graduate and notable alumnus of Julian Robertson’s Tiger Management – values the company’s near-monopoly on materials engineering solutions.
“If I’m a supplier to the fabs, I don’t need to make an exact bet on which of the chips is going to win,” he explained.
This strategic diversification protects Coatue Management’s portfolio from rapid obsolescence cycles while giving investors exposure to the hyper-growth of global AI factory expansions.
Note that all three names on Philippe Laffont’s list pay a dividend as well.
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