Billionaire investor Stanley Druckenmiller's family office Duquesne has offloaded two of Wall Street's hottest AI stocks – Nvidia Corp. NVDA and Palantir Technologies Inc. PLTR, according to a recent 13F filing.
What Happened: Druckenmiller’s Duquesne Family Office sold all of its Nvidia shares and significantly reduced its Palantir holdings by 95% during the third quarter.
This comes after Nvidia and Palantir have been on a tear this year. While the Nvidia stock surged nearly 190% in 2024 so far, Palantir shares have gained over 386% to date.
While it's not clear why Duquesne has offloaded these two red-hot AI stocks, profit booking could be one of the motives.
Nvidia and Palantir's relatively rich valuations could also have contributed to Duquesne paring its holdings – while Nvidia's trailing 12 months (TTM) price-to-earnings (PE) ratio stands at 55.21, Palantir's stands at 403.45.
Meanwhile, Druckenmiller is increasing his stake in Teva Pharmaceutical TEVA, a company that has seen its shares rise by 112% this year.
Teva’s strategic shift towards brand-name therapies and its resolution of opioid litigation as key factors contributing to its recent success.
Druckenmiller’s fund added 1,427,950 shares of Teva during the September-ended quarter, signaling confidence in the pharmaceutical company’s turnaround and growth potential.
Why It Matters: Druckenmiller, a protégé of George Soros, is renowned for his macroeconomic investment strategy, often making significant bets on industry trends rather than individual companies.
His recent decision to pivot from AI to pharmaceuticals marks a notable shift in his investment focus. Earlier this year, Druckenmiller increased his stake in Broadcom Inc. AVGO, a semiconductor giant, demonstrating his interest in high-growth sectors.
In February, Druckenmiller’s firm divested from Alphabet Inc. GOOG GOOGL and Amazon.com Inc. AMZN while bolstering investments in AI leaders like Microsoft Corp. MSFT and Nvidia.
Despite his bullish stance on AI, Druckenmiller’s recent actions suggest a strategic realignment towards the healthcare sector, particularly in companies like Natera Inc. NTRA, which has outperformed its sector significantly.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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