Stephen Mandel Sells All Meta Shares, Elevates TSMC as Lone Pine’s Top AI Pick
A company valued at nearly $2 trillion, playing a pivotal role in the artificial intelligence (AI) infrastructure supply chain, has emerged as the leading investment in Lone Pine Capital’s portfolio.
You might not have noticed, but one of the most significant financial disclosures of the quarter took place just last week. February 17 was the cutoff date for institutional investors managing at least $100 million in assets to submit their Form 13F filings to regulatory authorities.
These 13F forms provide a clear, concise overview of the equity positions bought and sold during the most recent quarter by some of Wall Street’s most astute investment professionals, including billionaire Stephen Mandel, who leads Lone Pine Capital. Mandel’s hedge fund has built a reputation for skillfully combining value-oriented and growth-focused investments. In a bold move, he fully divested from what was previously his fund’s largest holding, Meta Platforms, during the fourth quarter. This shift has propelled another frontrunner in the artificial intelligence sector to the top spot in his portfolio.
Lone Pine Capital’s billionaire leader bids farewell to Meta Platforms
As of the end of September, Mandel’s fund maintained a position of 1,322,260 shares in Meta, valued at around $971 million, representing about 7.1% of Lone Pine’s total invested assets. By the close of the fourth quarter in 2025, however, every single one of those shares had been liquidated.
A portion of this divestment can probably be attributed to straightforward profit realization. Meta had remained a steady component of Mandel’s portfolio since the third quarter of 2023. In the intervening period of over two years, the stock price has more than doubled. Notably, Lone Pine’s average holding period stands at just 16.5 months as of December 31, 2025, which underscores Mandel’s willingness to lock in gains whenever the right moment arises.
Yet, there could be additional factors contributing to Meta’s complete exit beyond mere profit-taking.
For instance, Meta’s stock experienced a sharp decline in late October following the release of its AI-related capital expenditure projections, which fell short of analysts’ forecasts. Although the investment community has largely accepted hefty outlays for AI infrastructure, Meta’s CEO Mark Zuckerberg has consistently ramped up these expenditures almost every quarter.
That said, Meta continues to possess exceptionally strong social media platforms that generate premium advertising revenue. Even though the substantial returns from its AI initiatives may take years to fully materialize, this decision to sell appears to be one that Mandel might come to second-guess in the future.
Introducing Stephen Mandel’s fresh top investment: Taiwan Semiconductor Manufacturing
Following Lone Pine’s total exit from Meta Platforms, the fund’s new flagship holding is Taiwan Semiconductor Manufacturing, commonly referred to as TSMC.
Although Mandel has been gradually trimming his fund’s exposure to this global leader in chip manufacturing over the past three years, the stock’s remarkable near-vertical ascent has positioned it as Lone Pine’s most valuable holding by market capitalization.
The primary catalyst for TSMC’s expansion is, without question, the ongoing AI boom. The demand for graphics processing units (GPUs) has skyrocketed, leading TSMC to aggressively increase its monthly production capacity for chip-on-wafer-on-substrate processes. With AI hardware demand far exceeding available supply, Taiwan Semiconductor benefits from a robust order backlog and significant leverage in pricing.
It’s worth remembering, however, that TSMC established a sturdy business base well before artificial intelligence captured the imagination of Wall Street. The company continues to serve as a vital provider of cutting-edge semiconductors for smartphones, personal computers, and a wide array of Internet of Things (IoT) devices.
Mandel is undoubtedly drawn to TSMC’s attractive valuation as well. Trading at a forward price-to-earnings multiple of 21, it represents a reasonable price for a behemoth approaching $2 trillion in market value, especially with projections indicating a 24% sales increase in 2027.
This strategic pivot highlights how seasoned investors like Mandel are repositioning their portfolios to capitalize on the enduring opportunities within the AI ecosystem, favoring foundational infrastructure providers over high-profile consumer-facing tech giants. As the AI landscape evolves, TSMC’s critical role in enabling advanced computing technologies positions it as a cornerstone for forward-thinking portfolios. Lone Pine’s increased emphasis on this semiconductor powerhouse reflects confidence in its long-term growth trajectory amid surging global demand for sophisticated chips.
