Coatue Management founder Philippe Laffont is positioning one of his largest artificial intelligence bets around semiconductor equipment suppliers rather than chipmakers themselves, arguing that the sector offers a more attractive way to gain exposure to the AI buildout, according to a report by CNBC.
The veteran technology investor said he favours companies that supply the tools and machinery used to manufacture advanced semiconductors, allowing investors to benefit from rising AI infrastructure spending without having to predict which chip designer ultimately emerges as the long-term winner.
Laffont described the strategy as a “pick-and-shovel” approach to AI investing, noting that companies developing AI chips—including established players and newer entrants—rely on the same manufacturing ecosystem to produce increasingly powerful processors.
Among Coatue’s notable positions is Dutch lithography equipment manufacturer ASML, which the firm has built into a significant holding. The hedge fund also maintains exposure to other semiconductor capital equipment companies, including Applied Materials and Lam Research, reflecting its conviction in the infrastructure layer underpinning AI growth.
The comments come as investors increasingly debate where the next phase of AI-driven returns will emerge, following strong gains among leading chipmakers and hyperscale technology companies. Laffont’s focus on semiconductor equipment providers suggests opportunities may extend beyond the most visible AI beneficiaries.
Despite his long-term optimism on AI, Laffont also stressed the importance of maintaining portfolio flexibility, highlighting liquidity as a key advantage of investing in public technology markets.
