Stanley Druckenmiller’s firm, Duquesne Family Office, made some interesting moves in the last quarter, according to recent 13F filings. The company decided to part ways with tech giants Alphabet and Amazon, instead focusing on two other mega-cap champions. Their stake in Microsoft increased by 6.7%, making it their top holding. Additionally, they bought call options on chipmaker Nvidia, worth over $242 million in notional value.
This shift in strategy reflects Druckenmiller’s continued bullishness on artificial intelligence (AI) stocks. Last year, he outlined plans to hold Nvidia for two years, despite concerns about overvaluation. His confidence has paid off, as Nvidia’s stock has risen nearly 90% since then, propelling the company to become the third most valued in the US.
Duquesne’s interest in Nvidia and Microsoft has been evident for some time. In early 2023, they invested a total of $430 million in both companies. Microsoft’s focus on AI initiatives, particularly in its cloud and software services, has contributed to its appeal. The company’s latest earnings report exceeded expectations, and its shares have already climbed over 8% this year.
Druckenmiller has long been an advocate for AI’s potential impact, stating at the 2023 Sohn Investment Conference that “AI is very, very real and could be every bit as impactful as the internet.” His firm’s recent moves demonstrate their commitment to capitalizing on this growing industry.
For more details, read the full article on Business Insider.