Stanley Druckenmiller on CNBC’s Delivering Alpha, September 28, 2022.
Scott Mullin | CNBC
Billionaire investor Stanley Druckenmiller spoke on Wednesday about his decision to sell his shares. Nvidia This year was a “big failure”.
“I’ve made so many mistakes in my investment career, one of which was probably between $800 and $950, that I lost all of the NVIDIA that I owned,” Druckenmiller said in an interview with Bloomberg. It was sold,” he said. “I don’t own anything and I didn’t own the last 400 points.”
Druckenmiller’s comments do not reflect Nvidia’s 10-for-1 stock split that took effect in June. The stock’s closing price on Wednesday was $135.72. On a split-adjusted basis, his sales would have occurred between $80 and $95.
Nvidia has been a major beneficiary of the artificial intelligence boom, selling its graphics processing units (GPUs) to top cloud companies and the largest developers of large-scale language models. The stock has soared 239% in the last year and is set to rise another 174% in 2024, with Monday’s closing price setting a new record.
Earlier this year, Druckenmiller revealed on CNBC’s “Squawk Box” that he cut his Duquesne Family Office position at Nvidia in late March, calling it “a huge struggle.”
Taking into account the split, Mr. Duquesne held approximately 6.18 million shares at the beginning of the year, 1.76 million shares at the end of the first quarter, and 214,000 shares at the end of the second quarter. In the third quarter of last year, Nvidia was his largest holding. At the time, he owned 8.75 million shares worth about $400 million.
If he kept all of his shares, it would be worth about $1.19 billion today. Duquesne has not yet announced its holdings for the third quarter.
“I thought the valuation was high because it tripled in one year,” Druckenmiller told Bloomberg. “NVIDIA is a great company and if the price came down we would get involved again. But now I’m licking the wounds of poor sales.”
Nvidia is scheduled to release quarterly results in November, and most of its top customers include: meta, microsoft, Amazon and alphabetis expected to file a financial report later this month.
Druckenmiller told CNBC in May that NVIDIA is “a little bit overhyped right now, but not very overhyped long term.” He was introduced to NVIDIA in 2022, adding that at the time, “I didn’t even know how to spell it.”
