TLDR
- Duquesne Family Office, run by Stanley Druckenmiller, sold Sandisk (SNDK) and bought Taiwan Semiconductor (TSM) in Q2 2026.
- Sandisk surged nearly 900% to its peak before June, then sold off sharply, though it remains up over 500% year-to-date.
- TSM has a Wall Street average price target of $555, implying around 33% upside over the next year.
- Sandisk’s average price target of $2,126 implies 41% upside, but analysts see higher risk due to the cyclical memory chip market.
- TSM is producing three new chips for Xiaomi using its 3nm and 6nm processes, expanding its role in Xiaomi’s semiconductor strategy.
Stanley Druckenmiller’s Duquesne Family Office made a notable portfolio shift in Q2 2026, selling Sandisk (SNDK) and buying Taiwan Semiconductor Manufacturing (TSM). The move drew attention given Sandisk’s status as the top-performing stock in the S&P 500 this year.
Taiwan Semiconductor Manufacturing Company Limited, TSM
TSM currently trades around $420, up nearly 40% year-to-date. Sandisk, which peaked at over $2,300 earlier this year after a nearly 900% run, has since pulled back but still trades around $1,499, up more than 500% in 2026.
If Druckenmiller sold Sandisk near its peak, he likely locked in strong gains. That timing would make the trade look smart in hindsight, regardless of what analysts say now.
Wall Street’s average price target on TSM is $555, implying about 33% upside from current levels. Recent analyst actions back that outlook: Bernstein raised its target to $554 in August, Needham lifted its target to $530 in July, and DA Davidson raised it to $500 in July.
Xiaomi Deal Adds New Catalyst for TSM
TSM will produce three new chips for Xiaomi using its advanced manufacturing processes. The headline chip is the Xring O3, a smartphone processor built on TSM’s 3-nanometer process, which has already entered mass production. Xiaomi plans to ship between 200,000 and 300,000 units in devices powered by it.
TSM will also produce the 6-nanometer Xring O100, designed to support Xiaomi’s MiMo AI model on consumer devices, and the 3-nanometer Xring D100, targeting autonomous driving applications. Both are expected to enter use next year.
Xiaomi has invested over 20 billion yuan (around $3 billion) in its Xring chip program and plans to invest at least 50 billion yuan ($7 billion) over 10 years. The strategy is aimed at reducing its dependence on Qualcomm and MediaTek.
Sandisk vs. TSM: The Risk Argument
Wall Street gives Sandisk a slight edge on one-year upside, with an average price target of $2,126, implying about 41% gains. TSM’s 33% projected upside is close but trails slightly.
However, the key difference is risk. Sandisk operates in the memory chip market, which is more cyclical than TSM’s logic chip business. That makes Sandisk’s returns harder to predict.
TSM trades at 31.1 times earnings, a premium valuation. Its Benzinga Edge scores are strong: Momentum at 85.86, Quality at 97.24, and Growth at 88.54. Valuation scores a neutral 30.91, which could cap gains if earnings growth slows.
Technically, TSM sits 14.2% above its 200-day moving average. It faces resistance at $436, with support near $385.50. The RSI at 50.21 is neutral, suggesting the stock needs a fresh catalyst to break out.
TSM rose 0.62% to $420 in Wednesday’s premarket session.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
