Eric Mandelblatt's Soroban Capital continues to love mega-cap tech for its exposure to the artificial intelligence theme, and nearly all the names in its Q2 letter are very familiar to investors. However, the firm did initiate a new position in a non-household name, CDW Corp. (NASDAQ:CDW), during the quarter. Here are all the technology names Soroban highlighted in its latest letter.
Also see Soroban Capital – AI Is Changing The World & These Stocks Will Benefit [Exclusive]
The biggest single-name position in tech
Soroban’s largest single-name technology position remains Taiwan Semiconductor, the biggest semi foundry in the world. In their second-quarter letter to investors, which was obtained by Hedge Fund Alpha, the Soroban team noted that TSMC (NYSE:TSM) has beaten not only Intel (NASDAQ:INTC) but also Samsung (KRX:005930) over the last 10 years, granting it a near monopoly in manufacturing the newest and best semiconductors.
Meanwhile, the company’s “deeply unprofitable” competitors have slashed their investment plans. The Soroban team sees TSMC’s moat and pricing power as “unrivaled” across all the industries they cover. They noted how difficult it is to manufacture leading-edge chips at “economically viable yields,” and TSMC is the only company capable of doing that now.
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