The billionaire investor, who bet big on Nvidia when it heralded the AI boom, began scaling back his position after the stock jumped from the $150 area to over $900 per share within a year. In a recent interview, Stanley Druckenmiller is said to have regretted selling Nvidia stock too early and admitted that he was “licking his wounds” about the stock’s enormous rise. That is, Druckenmiller, known for his macro-focused approach to investing, thought the valuation at Nvidia had gotten ahead of even the most sanguine estimates and was a natural place to take profits.
That only came after his cautious view of the AI euphoria in the market. He said that Nvidia is changing the world in the AI chip space but doesn’t hold any positions for long-term horizons like Warren Buffett. His early exit is unlike the current rally since Nvidia’s stock has tripled in the past year and is still going up. Still, Druckenmiller remains highly invested in tech though diversifying the portfolio into other growth and value sectors.
For one thing, AI-related demand for training hardware and software has become the driver behind Nvidia’s rapid growth. Such factors make the company a darling of shareholders and a focus for both institutional and retail investors. Druckenmiller’s caution points to a broader sentiment across some veteran investors—that AI hype has pushed valuations too high, too fast.
He also states that, though he wishes he had exited Nvidia a bit sooner, he shouldering this risk at such a lunatic pace does put him in position for taking advantage of opportunities elsewhere, should those arise. While Nvidia stock continues to soar, Druckenmiller’s strategic pivot demonstrates a much needed approach to a volatile landscape, with technology driving the change.
But those later comments give a view into his overall investment strategy and carry the contradiction of self-reflection versus prudent caution, giving a glimpse into the challenges experienced even by experienced investors under rapid market shifts and tech booms.
