Chase Coleman’s AI Bet Drops Apple and Tesla for TSMC and Broadcom
Investor Chase Coleman has reshaped his Magnificent Seven portfolio with a strong focus on artificial intelligence. The updated list drops Apple and Tesla, replacing them with Taiwan Semiconductor Manufacturing (TSMC) and Broadcom. Coleman believes this new selection will deliver better returns by 2026 than the original group of tech giants.
The revised portfolio now holds a 46.2% concentration in AI-related stocks. TSMC and Broadcom were chosen for their dominant roles in the AI market and substantial business scale. TSMC, in particular, supplies critical chips to many of the companies still in the portfolio.
Apple’s exclusion came after concerns over its limited AI strategy and reliance on older innovations. Tesla, meanwhile, faced doubts about its shifting market position and unclear long-term direction. Both were replaced by firms seen as better positioned for AI growth. Broadcom has entered the AI race with custom accelerator chips, offering an alternative to Nvidia’s GPUs. The new lineup includes Microsoft (10.5%), Alphabet (8%), Amazon (7.5%), Nvidia (6.8%), Meta Platforms (6.4%), TSMC (4%), and Broadcom (3%). Coleman’s adjustments suggest a bet on companies driving AI advancements rather than those lagging behind. Investors are now being advised to shift focus from Apple and Tesla toward TSMC and Broadcom. The move aims to align portfolios with the rapid expansion of AI technologies over the next few years.
Coleman’s updated Magnificent Seven portfolio reflects a clear preference for AI-driven growth. With nearly half its weight in AI stocks, the strategy banks on companies like TSMC and Broadcom to lead future gains. The changes also signal a broader industry shift away from firms slower to adapt to emerging tech trends.
