Billionaire investor licks his wounds over NVIDIA sale

The billionaire investor, who has never lost money in his 30-year career, originally intended to hold on to Nvidia for years, but said he made a “big mistake” by selling it too soon. He said it was. Druckenmiller told Bloomberg’s Sonali Basak this week.

“I’ve made so many mistakes in my investment career, one of which was selling all of Nvidia for probably between $800 and $950. Now that stock is worth (1 share) I think it’s about $1,300,” Druckenmiller said Wednesday.

Nvidia stock currently trades at around $139.59 after implementing a 10-for-1 stock split in June 2024, making it more accessible to a wider range of investors, especially those with small accounts. . Duquesne has built an impressive stock in the AI ​​darling that currently dominates the GPU market. In 2022, Duquesne held about $400 million in Nvidia stock, making him the company’s top shareholder. Druckenmiller began cutting back on funds in 2023. By August 2024, Druckenmiller had completely exited his position in NVIDIA stock.

“I don’t own anything right now,” Druckenmiller confirmed to Bloomberg. “That was a big mistake.”

He originally intended to hold the stock for years, but then saw it triple in value in a year and thought the valuation was “overpriced.” Nvidia’s stock price then skyrocketed in 2024 as demand for AI chips soared. Billionaire Larry Ellison, co-founder and chief technology officer of Oracle, recently treated NVIDIA CEO Jensen Huang to dinner at Nobu with Elon Musk, offering him more GPUs. He admitted that he had begged him to do so.

“This dinner where Elon and I begged Jensen for a GPU was like an oracle,” Ellison recalls. “Take our money. Take our money. By the way, we had dinner. No, no, take more. Take more of our money.”

Druckenmiller said the company is still designing around AI and could never say it won’t acquire Nvidia in the future.

“If prices come down, we will re-engage,” Druckenmiller added. “But now I’m licking my wounds from poor sales there.”