The Bad PlaceYahoo Finance | Billionaire Philippe Laffont Sold CoreWeave and Bought This Artificial Intelligence (AI) Stock Instead
Billionaire Philippe Laffont sold Coatue Management's stake in CoreWeave (CRWV), the AI data center company it had backed since 2024 and which became its largest holding, after the stock fell about 50% from its peak following construction delays and concerns over its high leverage and cash flow negative profile despite strong AI-driven demand and a growing revenue backlog.
Instead, Laffont significantly increased Coatue's position in Applied Materials (AMAT), the world's largest wafer fabrication equipment provider, citing its critical role in supplying chipmakers like Taiwan Semiconductor and Micron as they expand capacity to meet surging demand for AI accelerators and high-bandwidth memory, with Applied expecting over 20% equipment business growth in 2026 and continued momentum into 2027.
Applied Materials trades at 30 times forward earnings, which Laffont views as attractive given its growth outlook and margin expansion potential, with analysts forecasting 25% earnings-per-share growth in 2027, reinforcing his strategy of shifting from high-risk, pre-profit AI infrastructure plays to more established, essential suppliers in the AI supply chain.
#philippelaffont #appliedmaterials #taiwansemiconductor #ai #chipmakers
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