Dan Loeb’s hedge fund increases Taiwan Semiconductor holdings as 2nm node demand drives record margins and pricing.
Third Point, the hedge fund led by billionaire Dan Loeb, raised its stake in Taiwan Semiconductor (TSM) to 275,000 shares valued at $92.93 million. The move reflects confidence in TSMC’s dominance as the sole manufacturer for leading AI chip designers, including Nvidia, Apple, and AMD, regardless of architectural shifts in the sector.
TSMC’s 2nm node, priced above $30,000 per wafer—over 50% higher than its 3nm predecessor—has already secured more early customer commitments than any prior node. Apple has reserved nearly half of initial 2nm capacity for the iPhone 18, with AMD, Intel, and others expected to follow. The company reported Q1 2026 gross margins of 66.2%, prompting a raise in its long-term margin floor to 56%.
Despite bullish fundamentals, valuation concerns persist, with TSM trading near 30x trailing earnings, close to its 10-year peak. Risks also include geopolitical tensions and competition in advanced semiconductor manufacturing.