This Under-the-Radar Top Tech Investor Has 40% of His Portfolio in These 4 AI Stocks
Key Points
Taiwan Semiconductor Manufacturing will be a winner regardless of which chip designers come out on top.
Nvidia and AMD are designing hardware for the inference and agentic AI markets.
Broadcom has huge opportunities ahead as a designer of custom chips for hyperscalers.
- 10 stocks we like better than Nvidia ›
While he may not be a household name, Glen Kacher of Light Street Capital has been one of the market's best tech investors over the past three years. Formerly a Tiger Management analyst, Kacher founded Light Street in 2010, and his performance there over the last three years has been the best of the so-called "Tiger Cubs" (fund managers who are Tiger alumni).
Kacher's fund generated returns of 45.7% in 2023, 59.4% in 2024, and 37.3% in 2025. When a manager with that kind of track record puts 40% of his fund into four semiconductor stocks, it's worth taking a closer look at them.
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Taiwan Semiconductor Manufacturing
Kacher's largest holding is Taiwan Semiconductor Manufacturing (NYSE: TSM), representing 14.4% of Light Street's portfolio. Notably, he did buy some put options in the first quarter to hedge his position.
It's easy to see why Kacher would like TSMC. Through its technological expertise and scale, the company has achieved a virtual monopoly on advanced chip manufacturing. Basically, every logic chip designer relies on its services, and it ultimately doesn't matter to TSMC which company or technology wins out, as the foundry giant benefits regardless. As the need for artificial intelligence (AI) accelerators, central processing units (CPUs), and other chips continues to expand, TSMC looks well positioned to be a big winner.
Nvidia
Representing 8.9% of Light Street's holdings, Nvidia (NASDAQ: NVDA) is Kacher's second-largest position. Nvidia is the king of AI infrastructure and holds a dominant position in the large language model (LLM) training market with its graphics processing units (GPUs). The company created a wide moat in this area through its CUDA software platform, which is where most foundational AI code was written.
The company also has a strong data center networking portfolio and is working to position itself better in the inference and agentic AI markets. It acquired the key assets (and employees) of AI chip start-up Groq, which designs language processing units (LPUs) for inference workloads, and it introduced its Vera Rubin platform, which is aimed at the agentic AI market. The company has seen extraordinary growth, and it still has big opportunities ahead.
Broadcom
Broadcom (NASDAQ: AVGO) sits just below Nvidia at an 8.7% position, and was the only top-four holding that Kacher added to in the last quarter. The company is a leader in ASIC (application-specific integrated circuit) technology and data center networking, and it has huge growth in front of it with its custom AI chip business.
Broadcom helped Alphabet develop its powerful Tensor Processing Units (TPUs). With Alphabet ramping up its data center spending and starting to let customers purchase TPUs directly from Broadcom, this is set to be a huge revenue growth driver for the company. Meanwhile, other hyperscalers (owners of large data centers) are increasingly turning to Broadcom to help them develop their own custom chips.
The company expects its custom chip revenues to top $100 billion in its fiscal 2027, while Citigroup analysts recently projected that Broadcom's AI revenue would hit $180 billion in fiscal 2028. That's huge growth for a company that generated under $64 billion in total revenue in its fiscal 2025 (which ended Nov. 2, 2025).
Image source: Getty Images.
AMD
Rounding out Light Street's top four holdings is Advanced Micro Devices (NASDAQ: AMD), accounting for 8.4% of its portfolio. The chipmaker is riding two powerful trends in inference and agentic AI.
AMD's chiplet design, which both cuts production costs and allows more memory to be packed onto a processor, makes its GPUs well suited for inference workloads. The company now has two deal commitments worth around $100 billion each that should be big revenue growth drivers. At the same time, it is a leader in the data center CPU space. With this market set to explode in size thanks to the rise of agentic AI, AMD has some of the best growth opportunities in the semiconductor space in front of it.
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Citigroup is an advertising partner of Motley Fool Money. Geoffrey Seiler has positions in Advanced Micro Devices, Alphabet, and Broadcom. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Broadcom, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
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