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Billionaire Stanley Druckenmiller Just Increased Duquesne’s Stake in This Monster Artificial Intelligence (AI) Semiconductor Stock (Hint: It’s Not Nvidia)

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Stanley Druckenmiller of the Duquesne Family Office just doubled down on an under-the-radar artificial intelligence (AI) chip stock.

Following the end of each quarter, investment firms that manage over $100 million are required to file a form 13F with the Securities and Exchange Commission (SEC). These filings document the stocks that investment funds bought and sold during the most recent quarter — providing investors with an idea of where “smart money” is looking for value and growth.

In recent years, billionaire money manager Stanley Druckenmiller of the Duquesne Family Office came into the spotlight after the investor admitted he exited semiconductor powerhouse Nvidia far too early — calling his decision a “big mistake.”

Image source: Getty Images.

Since then, Druckenmiller has reentered the chip landscape — this time plowing into a key beneficiary of the artificial intelligence (AI) infrastructure boom beyond the usual suspects like Nvidia, Advanced Micro Devices, or Broadcom.

Over the past year, Duquesne has built a solid position in foundry specialist Taiwan Semiconductor Manufacturing (TSM 1.09%). During Q2, Druckenmiller increased his firm’s stake in Taiwan Semi by 28% — bringing its total exposure to roughly 765,000 shares.

Let’s unpack what makes TSMC such a compelling AI chip stock, and assess if now is a good opportunity for you to follow Druckenmiller’s lead.

Taiwan Semi is rolling on all cylinders, and…

The chart below highlights revenue and gross profit margin trends throughout the AI revolution for TSMC. With an estimated 68% share of the global foundry market, Taiwan Semi is operating on a level far above rivals like Samsung or Intel — giving the company the ability to exercise substantial pricing power for its services.

TSM Revenue (Quarterly) Chart

TSM Revenue (Quarterly) data by YCharts

…its momentum isn’t slowing down

At first glance, investors might worry that TSMC’s steep revenue growth and expanding profit margins are nearing a peak. But the data suggests otherwise.

Enterprise spending on AI infrastructure is accelerating, led by cloud hyperscalers Amazon, Alphabet, and Microsoft, which are in the midst of a historic capital expenditure (capex) spree to acquire GPUs and networking equipment for next-generation data centers. And it’s not just the cloud giants. Meta Platforms, Apple, and Tesla are also investing heavily to advance ambitions in robotics, autonomous driving, and consumer electronics.

AMZN Capital Expenditures (TTM) Chart

AMZN Capital Expenditures (TTM) data by YCharts

Collectively, this spending acts as a proxy for GPU demand. Behind the scenes, this is an enormous tailwind for Taiwan Semi — the foundry responsible for manufacturing these advanced chipsets for Nvidia, AMD, and many others.

While Nvidia and AMD capture most of the headline news, TSMC may actually offer the most durable growth prospects in the chip realm. In many ways, the company represents a long-term call option for the global buildout of AI infrastructure.

Is TSMC stock a buy?

Valuing TSMC stock is a bit tricky. Like many of peers in the semiconductor landscape, the company has witnessed considerable valuation expansion in recent years. On a simple price-to-earnings (P/E) or forward P/E basis, the stock certainly doesn’t look like a bargain.

TSM PE Ratio Chart

TSM PE Ratio data by YCharts

But dig deeper, and a different story emerges. Taiwan Semiconductor trades at a PEG ratio well-below 1 — suggesting the company may actually be undervalued relative to its future growth potential. That’s the kind of setup investors like Druckenmiller might be trying to capitalize on — a rare opportunity at the intersection of growth and value.

For long-term investors, I see TSMC as a no-brainer chip stock to buy and hold over the next several years. It may not command the spotlight, but it’s playing a supporting role in the infrastructure revolution that underpins the AI chip era.

Adam Spatacco has positions in Alphabet, Amazon, Apple, Meta Platforms, Nvidia, and Tesla. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Apple, Intel, Meta Platforms, Nvidia, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool recommends Broadcom and recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy.



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LifeLong Learning and TXST expand series on Artificial Intelligence

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Dr. Marianne Reese, Founder and Director of LifeLong Learning, conceived of the AI series due to AI’s exponential growth and the need for the public to understand its uses and limitations.

“AI is a relatively new tool that is being used in ways the public is often unaware of,” Reese noted. “We all need to know more about this powerful technology, understand AI’s positive and concerning applications, and learn the skills necessary to scrutinize the information it generates.

“AI will become increasingly prevalent, so we need to be informed consumers as AI impacts politics, medicine, business, finance and other areas of our lives,” Reese said.

The AI Learning Series is led by Dr. Kimberly Conner, Digital Strategy Lead for Information Technology at Texas State. Connor’s role is to help demystify innovation and make technology approachable for students, staff and faculty. With a rare combination of expertise in law, education and IT, Dr. Connor bridges the gap between complex digital tools and the people who use them.

Almost 80 lifelong learners attended the AI Series Kickoff Event on Tuesday, Aug. 19.

The Sept. 3 class covers AI use of our personal data and AI-generated misinformation and scams.

The Sept. 17 class features a comparison of different AI services (e.g., Chat GPT, Gemini).

The Oct. 1 class covers practical AI tools for daily life, with an exploration of AI applications for communication and creative projects.

The Oct. 15 class covers AI reliability & accuracy, AI limitations and and best practices for verification.

The Sept. 29 class covers AI for personal enrichment, such as enhancing hobbies and expanding personal interests.

The final class on Nov. 3 covers hands-on activities and features a closing presentation.

For more information visit their website at lllsanmarcos.org.



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China Calls for Regulation of Investment in Artificial Intelligence

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In a move reflecting a cautious strategic direction, China has called for curbing “excessive investment” and “random competition” in the artificial intelligence sector, despite its classification as a key driver of national economic growth and a critical competitive field with the United States.

Chang Kailin, a senior official at the National Development and Reform Commission – the highest economic planning body in the country – confirmed that Beijing will take a coordinated and integrated approach to developing artificial intelligence across various provinces, focusing on leveraging the advantages and local industrial resources of each region to avoid duplicating efforts, warning against “herd mentality” in investment without careful planning.

These statements come amid a contraction in China’s manufacturing industries for the fifth consecutive month, reflecting the pressures faced by the world’s second-largest economy, as policymakers attempt to avoid repeating past mistakes like those in the electric vehicle sector, which led to an oversupply of production capacity and subsequent deflationary pressures.

Chinese President Xi Jinping also warned last month against the rush of local governments towards artificial intelligence without proper planning, a clear indication of the Chinese leadership’s desire to regulate the pace of growth in this vital sector.

Despite these warnings, China continues to accelerate the development, application, and governance of artificial intelligence, as the government revealed a new action plan last week aimed at boosting this sector, which includes significant support for private companies and encouragement for the emergence of strong startups capable of global competition, which the National Committee described as a pursuit for the emergence of “black horses” in the innovation race, implicitly referring to notable success stories like the Chinese company DeepMind.

DeepMind gained international fame earlier this year after launching a powerful and low-cost artificial intelligence model, competing with the models of major American companies, igniting a wave of local and international interest in Chinese technologies.

In a separate context, a Bloomberg analysis showed that Chinese technology companies plan to install more than 115,000 artificial intelligence chips produced by the American company Nvidia in massive data centers being built in the desert regions of western China, indicating a continued effort to build strong artificial intelligence infrastructure despite regulatory constraints.

These steps come at a time when Beijing seeks to balance support for technological innovation with regulating investment chaos, in an attempt to shape a more sustainable path for the growth of artificial intelligence within China’s broader economic vision.



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A new research project is the first comprehensive effort to categorize all the ways AI can go wrong, and many of those behaviors resemble human psychiatric disorders.

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Scientists have suggested that when artificial intelligence (AI) goes rogue and starts to act in ways counter to its intended purpose, it exhibits behaviors that resemble psychopathologies in humans. That’s why they have created a new taxonomy of 32 AI dysfunctions so people in a wide variety of fields can understand the risks of building and deploying AI.

In new research, the scientists set out to categorize the risks of AI in straying from its intended path, drawing analogies with human psychology. The result is “Psychopathia Machinalis” — a framework designed to illuminate the pathologies of AI, as well as how we can counter them. These dysfunctions range from hallucinating answers to a complete misalignment with human values and aims.



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