TLDR
- Billionaire Stanley Druckenmiller sold Palantir stock and bought Taiwan Semiconductor (TSM) shares over four quarters
- Nvidia CEO Jensen Huang praised TSMC as a “world-class foundry” during a major partnership announcement with Intel
- TSM stock gained 2% after Huang’s endorsement, which came during Nvidia’s $5 billion Intel collaboration reveal
- Both Nvidia and Intel confirmed they still rely heavily on TSMC manufacturing capabilities despite Intel’s foundry expansion plans
- Wall Street analysts maintain Strong Buy ratings on TSM stock with price targets suggesting 4.4% upside potential
Taiwan Semiconductor Manufacturing Company (TSM) is gaining momentum in financial markets as prominent investors and tech leaders highlight the chipmaker’s critical role in artificial intelligence infrastructure. The world’s largest contract chip manufacturer has attracted attention from billionaire investor Stanley Druckenmiller while receiving public endorsement from Nvidia’s leadership team.
Druckenmiller’s investment firm, Duquesne Family Office, completely exited its Palantir Technologies position earlier in 2025. Over the same period, the legendary investor has been steadily accumulating Taiwan Semiconductor shares for four consecutive quarters. This strategic portfolio shift reflects growing institutional confidence in TSMC’s market position within the AI supply chain.
The timing of Druckenmiller’s move appears calculated. Palantir stock trades at a price-to-sales ratio of 126, well above software industry peers and exceeding valuations seen during the dot-com bubble. The data analytics company’s premium pricing likely influenced the decision to reallocate capital toward Taiwan Semiconductor’s more reasonable valuation metrics.
Nvidia CEO Delivers Strong Endorsement
Taiwan Semiconductor received a powerful endorsement this week from Nvidia CEO Jensen Huang during a high-profile industry announcement. Huang called TSMC a “world-class foundry” and stated “you can’t overstate the magic that is TSMC.” The praise came during Nvidia’s announcement of a $5 billion partnership with Intel to develop custom CPUs for data centers and personal computers.
TSM stock responded positively to Huang’s comments, gaining 2% on the trading day. Investors interpreted the endorsement as validation of Taiwan Semiconductor’s essential role in advanced chip manufacturing. The stock movement suggests market participants view the Nvidia CEO’s support as a strong indicator of future business relationships.
Despite Intel’s expanding foundry ambitions, both Nvidia and Intel acknowledged their continued dependence on TSMC manufacturing capabilities. Intel CEO Lip-Bu Tan confirmed that while Intel develops its 14A and 18A process nodes, near-term collaboration with Nvidia will require Taiwan Semiconductor’s production expertise.
Taiwan Semiconductor Maintains Manufacturing Leadership
TSMC’s foundry model positions the company to benefit from multiple AI trends simultaneously. The Taiwan-based manufacturer produces advanced semiconductors for clients including Nvidia, AMD, and Apple. This diversified customer base provides stable revenue streams as artificial intelligence applications expand across industries.
Analysts maintain optimistic outlooks for Taiwan Semiconductor stock performance. Wall Street researchers have issued a Strong Buy consensus rating based on six Buy recommendations, one Hold rating, and zero Sell ratings over the past three months. The average analyst price target of $280.57 per share implies 4.4% upside potential from current trading levels.
Jonathan Weber from investing research group Cash Flow Club noted that Taiwan Semiconductor “remains very well positioned and the clear manufacturing leader for the time being.” This competitive advantage should help the company maintain market share as AI infrastructure investment accelerates globally.
