It’s that time of year again. Billionaire investors have offered us a glimpse into their latest trades — in this case, during the first quarter of the year — and we may use this precious information for investing inspiration. How does this happen? Managers of more than $100 million in securities must file their latest moves on a quarterly basis with the Securities and Exchange Commission, and these 13F filings are publicly available.
Today, I’m focusing on the latest moves of Stanley Druckenmiller, an investor with an impressive track record over time. At the helm of Duquesne Capital Management, he delivered an average annual return of 30% over three decades — without losing money during any of those years. Druckenmiller has been retired for many years but today leads investing at the Duquesne Family Office.
And here, the billionaire recently made a few key moves concerning artificial intelligence (AI) stocks. Druckenmiller still isn’t buying Nvidia (NVDA 1.38%), a stock he sold a couple of years ago and said he would consider returning to, but he just loaded up on three stocks driving the next stages of the AI boom. Let’s check out this top investor’s latest moves.
Image source: Getty Images.
Stanley Druckenmiller and Nvidia
So, first, it’s important to note Druckenmiller’s past experience with Nvidia. The stock was the billionaire’s top position for part of 2023 — but he started cutting that position later in the year. A year later, Druckenmiller would go on to sell all of his Nvidia shares and express regret about doing so too soon. In an interview with Bloomberg in the fall of 2024, Druckenmiller said selling Nvidia when he did was one of the mistakes he’s made during his investing career. And he said he would consider buying Nvidia shares again in the future at a lower valuation.
Nvidia’s valuation has dropped since that time, but so far, Druckenmiller hasn’t returned to the AI chip leader.
NVDA PE Ratio (Forward) data by YCharts
That said, the billionaire has opened positions in three other companies that are also playing key roles in this technology boom. In the first quarter of this year, he did the following:
Druckenmiller bought 195,955 shares of Broadcom (AVGO 1.09%). It makes up 1.8% of his portfolio.
The billionaire purchased 23,400 shares of Micron Technology (MU 5.81%). It represents 0.2% of his portfolio.
Druckenmiller scooped up 411,400 shares of Intel (INTC 0.53%). It has a weighting of 0.5% in the portfolio.
Meanwhile, Taiwan Semiconductor Manufacturing remains one of his biggest holdings — the third-largest to be exact — and makes up nearly 5% of the portfolio.
Optimism about AI
Though Druckenmiller hasn’t offered reasons behind his moves, all of this suggests that he remains optimistic about the next stages of the AI story. Broadcom is making great strides in the AI chip market with its custom AI chips delivering massive growth. While Nvidia offers a chip that’s highly versatile across a broad range of uses, Broadcom differentiates itself by designing chips tailored to specific tasks.
Today’s Change
(-1.09%) $-4.63
Current Price
$420.56
Key Data Points
Market Cap
$2.0T
Day’s Range
$414.42 – $422.00
52wk Range
$226.18 – $442.36
Volume
267
Avg Vol
24M
Gross Margin
64.96%
Dividend Yield
0.59%
Intel, which had fallen behind in the earlier stages of the AI boom, may find itself in a better position these days as AI workloads also need central processing units (CPUs), which is Intel’s strength. The company has also partnered with Nvidia to bring Intel’s CPUs to Nvidia’s AI platforms and Nvidia GPU chiplets into Intel’s systems for personal computing.
Finally, memory and storage giant Micron is seeing soaring demand as AI workloads are memory-intensive. In fact, its biggest challenge is keeping up with this demand. In the latest quarter, Micron delivered record revenue, gross margin, and earnings per share — and expects more records in the current quarter.
Should you follow Druckenmiller’s moves?
So, should you seek inspiration from Druckenmiller — and favor these stocks over Nvidia? This depends on your investment strategy. Over the past five years, these stocks have underperformed Nvidia, so if investors rotate out of the biggest winner, that shift could favor these other players. Aggressive investors may consider this route.
AVGO data by YCharts
But it’s important to keep in mind that, today, these stocks don’t necessarily offer you a bargain from a valuation perspective. In fact, Nvidia looks like the best deal. Though Micron is cheaper, its valuation has increased, while Nvidia’s has declined.
AVGO PE Ratio (Forward) data by YCharts
So value-conscious investors might favor Nvidia at the moment. Meanwhile, the good news is that all of these companies have shown growth in recent times, thanks to the AI boom, and they could continue to benefit well into the future. This means that by picking up any of these Druckenmiller buys — or even Nvidia — you might score an AI win down the road.
