Stanley Druckenmiller says selling NVIDIA was a mistake. The billionaire investor sold the stock, seeing it as overvalued. Druckenmiller said today on Bloomberg TV that he would buy NVIDIA again if the price drops.
Thank you for registering!
Access your favorite topics in a personalized feed on the go. Download the app
By clicking “Sign Up”, you agree to our Terms of Service and Privacy Policy. You can opt-out at any time by visiting our settings page or by clicking “unsubscribe” at the bottom of the email.
Months after Stanley Druckenmiller sold all of his Nvidia stock, the billionaire investor said he regrets the decision.
“I’ve made so many mistakes in my investment career, one of them was selling everything I owned in Nvidia,” he told Bloomberg TV on Wednesday.
The Duquesne Family Office founder gradually removed semiconductor stocks from his portfolio despite his reputation as bullish on artificial intelligence.
Mr. Druckenmiller reduced his exposure to NVIDIA by 72% in the first quarter, then cut his stake by more than half again in the following months, according to 13F filings.
Druckenmiller now tells Bloomberg he no longer owns any shares in the AI chip kingpin: “I don’t own anything, I didn’t own the last 400 points.”
He estimates he sold when the stock was trading between $800 and $950, which is the price level before the 10-to-1 split in early June.
Druckenmiller was adamant that his sale was not due to fundamental doubts about NVIDIA’s potential. His main focus was on how expensive the stock looked.
“What changed was that it tripled in one year. I thought the valuation was high,” he explained. In May, he similarly suggested that AI trading was somewhat “overhyped,” even if it was a worthwhile investment in the long term.
Still, NVIDIA continues to have a significant lead over its competitors, with its stock price rising on strong demand for its new generation of AI chips. The stock is up 174% since the beginning of the year.
Druckenmiller said that even after exiting his stake, he continues to be exposed to AI by investing in the infrastructure needed to power AI technology.
But he never owned Nvidia again, and if the right conditions were right, he would.
“I think NVIDIA is a great company, and if the price came down we could get involved again, but right now we’re licking our wounds because they didn’t sell well there,” he said.
