Magellan Sees Market Rotation as TSMC Rises and Big‑Tech AI Leaders Lose Steam

The fund’s letter points to investors favoring chip makers with clear earnings power over big tech names tied to costly AI bets.

Overview

Magellan’s fourth‑quarter 2025 investor letter reports a 0.1% return and a shift away from earlier AI mega‑cap leadership.
TSMC, along with Alphabet and Amazon, led gains as AI chip demand stayed strong and TSMC began mass production of 2‑nanometer Gate‑All‑Around chips.
Microsoft gave back earlier gains as investors questioned its AI lead after strong execution by Google and Anthropic.
Meta shares fell after mixed third‑quarter 2025 results as continued spending on non‑core projects and “superintelligence” weighed on sentiment.
Market snapshots on April 2 showed TSMC at $339.04 and $1.76 trillion, Microsoft at $373.46 and $2.77 trillion, and Meta at $574.46 and $1.45 trillion, with hedge‑fund ownership of TSMC rising to 224 portfolios from 194.