Chase Coleman's AI-Focused Investment Portfolio: Why It Beats the Traditional Magnificent Seven

The Blueprint Behind a Better Tech Concentration Strategy

When hedge fund managers disclose their quarterly holdings through SEC Form 13F filings, investors get a rare window into professional investment thinking. Tiger Global Management’s latest portfolio reveals that Chase Coleman has crafted an alternative to the widely-followed Magnificent Seven that may offer superior growth potential in the AI era.

Rather than holding the traditional seven mega-cap stocks, Coleman’s concentration strategy emphasizes companies positioned at the center of artificial intelligence infrastructure buildout. His top holdings reflect this thesis:

• Microsoft (10.5% of portfolio)
• Alphabet (8% of portfolio)
• Amazon (7.5% of portfolio)
• Nvidia (6.8% of portfolio)
• Meta Platforms (6.4% of portfolio)
• Taiwan Semiconductor Manufacturing (4% of portfolio)
• Broadcom (3% of portfolio)

These seven positions represent 46.2% of Coleman’s total portfolio—a bold concentration that signals high conviction in AI-driven opportunities.

The Classic Seven vs. Coleman’s Reimagined Mix

The traditional Magnificent Seven consists of Nvidia, Apple, Alphabet, Microsoft, Amazon, Meta Platforms, and Tesla. However, Coleman’s portfolio tells a different story. Two major exclusions stand out: Apple and Tesla have been replaced with Taiwan Semiconductor and Broadcom—companies more directly exposed to AI infrastructure scaling.

Why Apple Falls Behind in the AI Race

Apple has struggled to demonstrate meaningful artificial intelligence innovation. While competitors have launched generative AI features and capabilities, Apple’s own AI roadmap remains underwhelming. The company has delayed feature releases repeatedly and hasn’t introduced groundbreaking technology recently. Most critically, Apple appears poised to become a customer of established AI providers rather than a leader—a defensive posture compared to its rivals. Growth metrics reflect this lag, with Apple significantly trailing the other mega-caps on this list.

Why Tesla No Longer Fits the New Paradigm

Tesla presents a different challenge. While the company maintains AI aspirations through self-driving development and partnerships with xAI, its core business faces headwinds. Electric vehicle adoption has peaked from its euphoric highs, and the fading government subsidies have reduced consumer purchasing power. Tesla’s future depends on speculative bets on robotaxis and humanoid robots—ventures without guaranteed success. In contrast, the other six companies in Coleman’s mix are generating substantial profits today.

The Semiconductor Play: Why TSM and Broadcom Matter More

Taiwan Semiconductor Manufacturing and Broadcom represent the unglamorous but essential layer of AI infrastructure. These companies aren’t competing for consumer attention; they’re supplying the fundamental technology that powers the entire ecosystem.

Taiwan Semiconductor ranks as the world’s 10th largest company by market capitalization ($1.5 trillion) and serves as a critical chip supplier to nearly every firm in this portfolio. As data center buildout accelerates globally, TSM remains the primary beneficiary. Its role is defensive, stable, and tied to inevitable AI expansion.

Broadcom similarly benefits from AI infrastructure demand through its custom AI accelerator chip business. These processors are gaining traction as viable alternatives to Nvidia’s dominant GPU offerings. As enterprises seek diversification in their chip suppliers, Broadcom’s market position strengthens. The company frequently swaps places with Tesla as the seventh or eighth largest company by market value—a testament to its scale and relevance.

The Case for This New Configuration Going Forward

Coleman’s portfolio construction reflects a sophisticated understanding of AI-driven market evolution. By replacing consumer-focused companies with infrastructure and platform plays, he’s positioned for sustained growth through the infrastructure cycle. This mix balances direct AI exposure (Microsoft, Alphabet, Amazon, Meta through data centers and platforms) with enabling technologies (Nvidia, Broadcom for chips) and critical manufacturing capacity (Taiwan Semiconductor).

The concentration level—46.2% in seven positions—indicates that Chase Coleman views this specific collection as the optimal vehicle for capturing AI’s economic impact. Investors evaluating their own tech exposure should consider whether their current holdings reflect this same understanding, or whether maintaining weight in companies like Apple and Tesla represents outdated conviction. The evidence suggests that semiconductor suppliers and core AI platform builders will continue outperforming consumer electronics specialists as artificial intelligence infrastructure deployment accelerates through the coming years.