Billionaire investor Dan Loeb is putting his money where the silicon is. His hedge fund Third Point held 275,000 shares of Taiwan Semiconductor Manufacturing Company as of the first quarter of 2026, a position valued at roughly $93 million, making TSMC his top AI conviction bet.
The move is notable not just for what Loeb is buying, but for what he’s trimming. Third Point significantly reduced its Nvidia stake during the same quarter, signaling a preference for the company that actually fabricates the chips over the company that designs them.
Why TSMC, and why now
Loeb described semiconductors as “the most attractive sector right now” in May 2026. TSMC commands roughly 70% of the global contract semiconductor production market. Nvidia, AMD, and virtually every major AI hardware player relies on the Taiwanese foundry to turn designs into physical silicon.
The financial results back up the thesis. TSMC reported $13.2 billion in revenue for May 2026 alone, representing a 30.1% jump compared to the same month a year earlier. That growth was driven overwhelmingly by AI-related orders, as hyperscalers and cloud providers continue racing to build out the compute infrastructure required for increasingly demanding AI models.
