Billionaire Stephen Mandel's Lone Pine Capital has completely liquidated its stake in Meta Platforms during the fourth quarter of 2025, divesting more than 1.3 million shares after maintaining the position since the third quarter of 2023. The exit marks a significant portfolio repositioning for the hedge fund, with sources attributing the move to profit-taking considerations and concerns surrounding Meta's aggressive capital expenditure guidance related to artificial intelligence infrastructure development.
Following the Meta divestment, Taiwan Semiconductor Manufacturing Company (TSMC) has ascended to the position of Lone Pine Capital's largest holding by market value. The shift reflects the fund's reallocation of capital toward semiconductor stocks benefiting from sustained demand in the artificial intelligence sector. TSMC's stock has experienced substantial appreciation during the period, supported by robust demand for AI chips and what analysts characterize as a reasonable valuation multiple, with the company trading at a forward price-to-earnings ratio of approximately 21.
The portfolio changes underscore evolving investment perspectives within major hedge funds regarding technology sector exposure. While Meta faced scrutiny for its substantial AI-related capital commitments, TSMC's position as a critical supplier to the AI industry has positioned it as a beneficiary of the sector's expansion. These moves reflect broader market dynamics as investors reassess valuations and growth trajectories across technology companies amid the accelerating artificial intelligence adoption cycle.