Stanley Druckenmiller’s company dumped Alphabet and Amazon last quarter, 13F filings show.
The firm increased its stake in Microsoft, while buying call options on Nvidia.
Druckenmiller has increasingly focused on AI stocks since 2023.
Stanley Druckenmiller’s firm has ditched Alphabet and Amazon, boosting bets on two other mega-cap champions instead, a Security and Exchange Commission filing disclosed on Wednesday.
The billionaire investor’s Duquesne Family Office stake in Microsoft increased 6.7% last quarter, becoming the firm’s top holding. Though its exposure to Nvidia fell 29%, it loaded up on call options for the chipmaker, worth over $242 million in notional value.
It’s a sign Druckenmiller’s bullishness on artificial intelligence stocks remains undeterred. In June of last year, the investor outlined plans to hold Nvidia for two years, a suggestion that was out-of-line amid mounting overvaluation concerns.
Eight months later, the semiconductor manufacturer has risen nearly 90%, and this week it has overtaken both Amazon and Alphabet to become the third most valued company in the US. Its meteoric rise is the result of its products proving vital to helping the AI industry grow.
Duquesne’s focus on Nvidia and Microsoft is at least a year in the making, after the office snapped up a collective $430 million in both companies in early 2023. Bullishness on Microsoft also stems from its AI initiatives, with the firm implementing the technology in its cloud and software services. Its latest earnings report saw revenue surpass expectations, and its shares have already climbed over 8% this year.
“AI is very, very real and could be every bit as impactful as the internet,” Druckenmiller previously said at the 2023 Sohn Investment Conference.
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