Months after Stanley Druckenmiller sold off his entire Nvidia position, the renowned investor admits he regrets the decision.
“I’ve made many mistakes in my investment career, and one of them was selling all my Nvidia,” Druckenmiller shared in a recent interview with Bloomberg TV.
As the founder of Duquesne Family Office, Druckenmiller gradually divested from the semiconductor stock, despite his widely known bullish stance on artificial intelligence.
According to 13F filings, in the first quarter, Druckenmiller reduced his Nvidia exposure by 72%, followed by another significant reduction in the subsequent months. He confirmed to Bloomberg that he no longer holds any Nvidia shares: “I own none, and I’ve owned none for the last 400 points.”
He estimates he sold when Nvidia shares traded between $800 and $950, referring to pre-split price levels, before the stock’s 10-to-1 split in early June.
Druckenmiller clarified that his decision to exit wasn’t driven by doubts about Nvidia’s potential. Instead, he was primarily concerned about the stock’s valuation.
“It tripled in a year, and I thought the valuation was stretched,” he explained. In May, he also suggested that while AI investments were promising in the long run, they seemed slightly “overhyped” at that moment.
Nvidia, however, has continued to surge, driven by strong demand for its next-generation AI chips, maintaining a significant lead over its competitors. Year-to-date, the stock has soared 174%.
Despite selling his Nvidia stake, Druckenmiller remains invested in AI, focusing on the infrastructure supporting the technology.
He hasn't ruled out the possibility of buying Nvidia again under the right circumstances:
“Nvidia is a great company, and if the price comes down, we’d likely get involved again. For now, I’m licking my wounds from a poor sale,” Druckenmiller said.
