Billionaire investor Stanley Druckenmiller’s firm made significant portfolio adjustments last quarter, as revealed by 13F filings. The notable moves included divesting from Alphabet and Amazon while increasing positions in Microsoft and embracing Nvidia through call options.
According to Securities and Exchange Commission filings, Druckenmiller’s Duquesne Family Office opted to offload its holdings in Alphabet and Amazon, redirecting its focus towards other high-performing giants. Notably, the firm bolstered its investment in Microsoft, marking a 6.7% increase in its stake, which now stands as its top holding. Simultaneously, despite a 29% reduction in its exposure to Nvidia’s stock, Duquesne took a bullish stance by acquiring call options for the chipmaker, amounting to over $242 million in notional value.
This strategic shift underscores Druckenmiller’s sustained confidence in artificial intelligence stocks, a trend that has been evident since 2023. Last year, he outlined plans to hold Nvidia for two years, despite concerns about overvaluation. The decision has proven prescient, with Nvidia’s stock surging nearly 90% since then, propelling it to become the third most valued company in the US, surpassing both Amazon and Alphabet. Nvidia’s pivotal role in advancing the AI industry has been a key driver of its meteoric rise, with its products playing a crucial role in the sector’s growth.
Duquesne’s increased focus on Nvidia and Microsoft has been brewing for over a year, as evidenced by the firm’s significant investments in both companies in early 2023, totaling $430 million. The optimism surrounding Microsoft is fueled by its robust AI initiatives, integrated into its cloud and software services. The company’s recent earnings report exceeded expectations, further boosting investor confidence, with its shares already climbing over 8% this year.
Druckenmiller’s bullish outlook on AI was highlighted at the 2023 Sohn Investment Conference, where he emphasized the transformative potential of the technology, likening it to the impact of the internet.
In essence, Druckenmiller’s strategic portfolio adjustments reflect a continued bet on the future of artificial intelligence, positioning Duquesne to capitalize on the burgeoning opportunities within the sector.
