Stanley

One of the first investors to buy Nvidia (NVDA 1.04%) for the artificial intelligence (AI) boom was Stanley Druckenmiller at his Duquesne Family Office investment fund. At the end of 2023, it was one of his largest positions, a year where the stock more than tripled for investors, putting it on the path to become the largest company in the world by market capitalization.

Then, in 2024, Druckenmiller began to sell down his stake in Nvidia. By the end of last year, he had completely exited his position. What has he been buying instead? Last quarter, Duquesne bought two other trillion-dollar AI stocks: Taiwan Semiconductor Manufacturing (TSM -1.68%) and Microsoft (MSFT -0.43%).

Let’s see whether you should follow Druckenmiller and buy these two stocks for your portfolio today.

Image source: Nvidia.

Nvidia’s semiconductor supplier

Some readers may already know this, but Nvidia does not manufacture its advanced computer chips itself. It only designs them. The key manufacturing supplier of Nvidia chips is Taiwan Semiconductor Manufacturing, or TSMC for short. TSMC only makes computer chips for third parties and is known as a semiconductor foundry. These include Nvidia, but also the likes of Apple, Broadcom, and other technology giants.

With the insatiable demand for computer chips from the growing AI market, TSMC has been doing quite well in recent quarters. Last quarter, revenue grew 44.4% year over year to $30 billion. Not only is TSMC one of the largest businesses in the world, but one of the fastest growing.

As one of the only companies that can manufacture advanced semiconductors at scale, TSMC has been able to sell its computer chips to customers like Nvidia with fat profit margins. Last quarter, operating margin was close to 50%, which is unheard of for a manufacturing business.

At today’s stock price, TSMC trades at a price-to-earnings ratio (P/E) of 34. While this is slightly expensive, it is much better than Nvidia’s P/E ratio of 51. When you consider that both stocks will benefit from the growing demand for AI computer chips, it is no surprise that Duquesne sold its stake in Nvidia and owns TSMC today instead.

Microsoft’s opportunity in AI

Microsoft is a large customer of Nvidia as the company accelerates its buildout of cloud computing data center infrastructure to power the AI revolution. It has a relationship with OpenAI, the leading private AI company that is spending hundreds of billions of dollars on infrastructure. In 2025 alone, Microsoft is planning to spend $80 billion on capital expenditures to help catch up with AI demand.

Its cloud revenue is benefiting massively from the growth in AI. Its Azure cloud computing division grew revenue 34% year over year last quarter to $75 billion, making it the second-largest cloud business in the world apart from Amazon Web Services (AWS). Overall revenue is growing well due to Microsoft’s diversified assets in personal computing, Office 365 subscriptions, and other services such as LinkedIn. Revenue was up 17% year over year last quarter, with operating income up 22% (both in constant currency). Expanding operating margins to 45% makes Microsoft one of the most profitable businesses in the world.

Like TSMC, Microsoft trades at a much cheaper P/E ratio than Nvidia, at 37.5 as of this writing. With steady growth, margin expansion, and a clear line of new demand for Azure for AI solutions, Microsoft looks like a solid buy-and-hold stock for investors over the next decade and beyond.

At the end of the second quarter, TSMC was 4.3% of the Duquesne stock portfolio, according to its 13F filing, increasing its position by 27% more shares in the period. Microsoft was a completely new buy for the fund, but it is already a 2.5% position. Both stocks have done well throughout the second and third quarters, but can still be good long-term buys for investors looking for inspiration from super investors like Druckenmiller.

Luc Robitaille knew his hockey playing career was over when it took him longer to get his battered body ready for a game than it did to play it.

“It became harder and harder physically,” said Robitaille, whose next stop was the hall of fame. “I think I knew at that point.”

And once his mind was made up, there was no turning back.

For Anze Kopitar, who is in the peak of good health, the decision was a little different. The Kings’ longtime center announced last month that, at 38, he will retire after this season and spend more time with his family. But, like Robitaille, there will be no turning back.

“I’m not going to change my mind,” he said.

In fact, he’s not going to change anything. Kopitar said he’s approaching this season, his 20th with the Kings, the same way he approached the first 19.

“The last few years, I told myself that I have to enjoy it because you don’t know when the ending is com[ing],” he said. “So I’ve been enjoying it. I’m obviously having a lot of fun, still playing the game. This year won’t be any different.

“The focus is still on this season.”

A season that kicks off Tuesday when the Kings host the Colorado Avalanche. But while Kopitar is starting the season the same way as always, he’s hoping for a different ending since the Kings’ last four years have ended with first-round playoff losses to the Edmonton Oilers.

Another Stanley Cup title would be a nice parting gift, especially since Kopitar, entering a team-record 10th season as captain, would be the first man to hoist the trophy, an honor that went to Dustin Brown when the Kings won in 2012 and 2014.

“I’d like to win every year. I’d like to win this year,” he said.

“My kids weren’t born when we won, so I’d like to win so they can experience that feeling too.”

Kings captain Anze Kopitar skates during a game against the Chicago Blackhawks in March.

(Michael Reaves / Getty Images)

However Kopitar’s season finishes, his career will end with him joining Robitaille, now the Kings president, in the Hockey Hall of Fame. He is the Kings’ all-time leader in games (1,454), assists (838) and winning goals (78) and ranks in the top three in goals, points, plus-minus and power-play scores.

And just nine players in NHL history have played more games with one team than Kopitar, who has spent his entire career with the Kings.

Unlike Robitaille, he’s hardly hobbling off into retirement. He led the Kings with 46 assists and was second with 67 points last season, playing in 81 of 82 games. He also won his third Lady Byng Memorial Trophy, which goes to the player exhibiting the best sportsmanship and gentlemanly conduct in the NHL.

But his two children — daughter Neza, 10, is a talented figure skater and son Jakob, 9, plays hockey — deserve more of his time and attention, he said.

“I still love to be in hockey and I’m still productive,” Kopitar said. “But on the flip side, the kids need their dad to be more present and be a dad, not a hockey player. I can walk away on my own terms and not be forced to retire because of injuries and because the body’s not holding up.”

Anze Kopitar and his wife, Ines, attend a Lakers game at Crypto.com Arena in January 2024.

(Allen J. Schaben / Los Angeles Times)

That wasn’t Robitaille’s experience. A fractured ankle late in career and lower back pain so severe he could hardly get out of bed, led to his retirement in 2006, less than six months before Kopitar’s NHL debut.

“It kind of felt to me that I had squeezed everything out of the lemon. There was nothing left,” Robitaille said. “I was really at peace.”

As for what advice he’d give his captain, Robitaille said he’ll tell Kopitar to make time to stop and smell the roses on his last trip around the league.

“If you listen to 99% of the guys that retire in any sport, the one thing they miss is the [locker] room,” he said. “So when you know you’re near the end, you’ve got to make sure you pay attention to every one of those little moments that you’re going to miss for the next 50 years of your life.

“You’re playing a game. You’re 30 years old or 40 years old — 38 for Kopi — and he’s playing a game. It’s amazing. Most people don’t get to do that in their life, you know?”

Kopitar’s decision comes with the Kings at a crossroads. They tied team records for points (105) and wins (48) last season while going a franchise-best 31-6-4 at home in Jim Hiller’s first full season as coach. That earned the team second place in the Pacific Division, its best finish in a decade.

Kings captain Anze Kopitar, left, speaks to defenseman Drew Doughty during a game against the Winnipeg Jets in December 2023.

(Allen J. Schaben / Los Angeles Times)

The postseason was déjà vu all over again, however, with the Oilers eliminating the Kings.

General manager Rob Blake resigned four days later and was replaced by Ken Holland, who won four Stanley Cups as GM of the Detroit Red Wings. The Kings’ core is also in transition because when Kopitar steps aside, only defenseman Drew Doughty will remain from their Stanley Cup-winning teams.

“Passing the torch, [we]’ve been trying to for the past few years, been trying to mentor some of the kids in this locker room,” Kopitar said. “Maybe that’s what it is.”

Holland had mixed results in his first summer with the Kings, adding forwards Corey Perry (who will miss the first month of the season because of a knee injury) and Joel Armia, defensemen Brian Dumoulin and Cody Ceci and goalkeeper Anton Forsberg, and re-signing winger Andrei Kuzmenko to a club-friendly contract.

Also back are leading scorers Kevin Fiala and Adrian Kempe, who had 35 goals each, wingers Warren Foegele and Quinton Byfield and goaltender Darcy Kuemper, who had a career-best 2.02 goals-against average and finished third in Vezina Trophy voting.

But Holland lost veteran defenseman Vladislav Gavrikov to the New York Rangers and failed to land Mitch Marner, the summer’s most-sought player, who wound up in Las Vegas.

And now he’s the team’s first general manager in two decades who has been forced to ponder a future without Anze Kopitar.

Anze Kopitar takes the ice before a game against the Winnipeg Jets in December 2023.

(Allen J. Schaben / Los Angeles Times)

“We’re really going to enjoy having Kopi in the lineup this year. But next summer it’s going to be a big void,” Holland said on the Canucks Central podcast. “He’s big and strong. And it’s hard to find big, strong, talented centermen.

“He’s very intelligent. And I think the team follows his lead.”

As for Kopitar, he’s not thinking past the next nine months. He has the rest of his life to figure out what comes next.

“I haven’t really given too much thought of what’s going to happen [next], except for being home for my kids,” he said. “I’ll take my time and then see what, see what life throws at me.

“I’m going to miss the game of hockey. What I’m not gonna miss is working out, getting ready for the season, all the hours you’ve got to put in. But the game itself, of course, I’m going to miss it. It’s been here for the better part of 35 years. But listen, the summers are going to be more enjoyable.”