Tairen Capital’s Terry Zhang flags Intel gains and Meta Platforms opportunity

Tairen Capital manager Terry Zhang has delivered significant returns through strategic positioning in the semiconductor sector, with Intel representing just over 4 per cent of the fund’s portfolio as of the end of the first quarter of 2026. The chipmaker’s shares have risen 486 per cent over the past year, driving its market capitalisation to approximately $1 trillion.

Beyond the Intel position, Zhang’s portfolio has benefited from broader momentum in the artificial intelligence and semiconductor industries. Micron shares rose 91 per cent in the past month, while the iShares South Korea ETF gained just over 31 per cent during the same period. The fund also held Lumentum Holdings, which surged more than 1,000 per cent over the past year, although Tairen Capital has since trimmed that position by nearly half.

The manager has also reduced exposure to other AI beneficiaries, cutting its Alphabet holding by around 55 per cent. These adjustments come as the fund seeks to balance its concentration in names that have profited from the ongoing tech rally, with the portfolio described as well-balanced across sectors benefiting from AI momentum.

Zhang has identified Meta Platforms as an undervalued opportunity, noting the company trades at a trailing price-to-earnings ratio of 22.9 times. The stock has sagged 3 per cent year to date, contrasting with broader sector gains, which Zhang views as creating a potential value entry point for investors.

The fund manager cites Meta’s potential in AI monetisation and its planned expansion into cloud computing as key drivers for the stock. Mark Zuckerberg has stated that entering the cloud computing business as a hyperscaler is definitely on the table, a move Zhang believes could position Meta as a significant player in the high-growth cloud sector.

Meta is also developing its own hardware, including a new chip model called Muse Spark, which Zhang considers underrated. The company’s leadership is focused on monetising its user base through subscriptions and other avenues, with Zhang suggesting these factors could make Meta a surprise performer in the second half of the year.

While the 13F filing reflects positions as of the end of the first quarter, the recent performance of holdings like Micron and the iShares South Korea ETF raises questions about current portfolio weights. Zhang’s focus on Meta’s cloud ambitions and AI infrastructure suggests a strategy that looks beyond the immediate semiconductor rally to longer-term monetisation opportunities.