By Months after Stanley Druckenmiller offloaded his entire Nvidia stake, the billionaire investor says he regrets the decision.
“I’ve made so many mistakes in my investment career. One of them was I sold all my Nvidia,” he told Bloomberg TV on Wednesday.
The Duquesne Family Office founder gradually rid his portfolio of the semiconductor stock, despite his reputed bullishness on artificial intelligence.
In the first quarter, Druckenmiller cut his Nvidia exposure by 72%, then cut shares again by over half in the months that followed, 13F filings show.
Druckenmiller now has told Bloomberg he no more stake in the AI chip kingpin: “I own none and I owned none the last 400 points.”
By his estimates, he sold when shares traded between $800 and $950, referring to price levels before the stock was split 10-to-1 in early June.
Druckenmiller assured that his sell-off wasn’t due to underlying doubt in Nvidia’s potential. He was primarily focused on how expensive shares looked to be.
“What changed is it tripled in a year, and I thought the valuation was rich,” he explained. In May, he similarly signaled that AI trades had become slightly “overhyped,” even if they were a worthwhile investment long term.
Still, Nvidia has continued to tear higher on strong demand for its new-generation AI chips, and continues to enjoy a massive lead ahead of its competition. The stock is up 174% year-to-date.
With his stake gone, Druckenmiller said he remains exposed to AI by investing in the infrastructure needed to power this technology.
But he is not past owning Nvidia again, and would do so in the right conditions:
“I think Nvidia is a wonderful company and were the price to come down we get involved again, but right now I’m licking my wounds from a bad sale there,” he said.
