Opinion: Billionaire Stanley Druckenmiller, After Dropping This AI Giant Last Year, Could Be Coming Back to It During the Nasdaq Correction

3 months ago 41

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Adria Cimino, The Motley Fool

Sun, Mar 16, 2025, 9:15 AM 5 min read

With the S&P 500 and Nasdaq successful correction territory, you whitethorn not beryllium feeling precise optimistic astir investing. But present is really an fantabulous clip to bargain stocks due to the fact that galore of yesterday's highfliers are today's ungraded inexpensive deals. So, a clip of marketplace diminution represents the cleanable infinitesimal to get successful connected a prime institution astatine a discount, with the adjacent measurement being to bent connected for the agelong word to benefit.

And today, 1 billionaire capitalist successful peculiar whitethorn beryllium taking vantage of this marketplace moment. Billionaire Stanley Druckenmiller has a agelong way grounds of success, delivering an mean yearly instrumentality of 30% implicit 30 years astatine Duquesne Capital Management without immoderate money-losing years. He present manages $3.7 cardinal arsenic caput of the Duquesne household office.

But past fall, Druckenmiller said helium was disappointed with 1 of his latest investing moves. He sold an artificial quality (AI) banal that's soared much than 1,900% implicit the past 5 years -- and helium expressed involvement successful getting backmost successful connected the maturation communicative astatine the close valuation. Druckenmiller has apt noticed the important driblet successful this player's terms successful caller weeks. In my opinion, helium mightiness beryllium buying this banal for a bargain during the Nasdaq correction.

A unreality with AI written connected it is shown successful a information center.

Druckenmiller holds a fig of tech stocks successful his portfolio and has spoken favorably of AI, saying he's a semipermanent believer successful the technology. So, helium intelligibly aims to beryllium progressive successful this high-growth story. Yet, past year, Druckenmiller reduced his holding of AI elephantine Nvidia (NASDAQ: NVDA) and yet closed retired the presumption successful the 3rd quarter. The capitalist primitively bought his Nvidia involvement successful the 4th fourth of 2022, and it roseate astir 700% during its clip successful his portfolio. The crushed for Druckenmiller's actions? He thought its valuation had gotten excessively rich.

Last year, Nvidia traded for arsenic overmuch arsenic 50 times guardant net estimates. But adjacent with Nvidia trading astatine that level, Druckenmiller inactive considered his determination "a large mistake," arsenic helium said successful a Bloomberg interview, adding that helium would see buying the banal again astatine the close valuation.

Since Nvidia banal has fallen 10% successful a month, leaving the shares trading astatine 26 times guardant net estimates, I judge that infinitesimal whitethorn beryllium now. I wouldn't beryllium amazed if Druckenmiller took this accidental to instrumentality to Nvidia, aiming to payment from the adjacent question of maturation ahead.

It's important to retrieve that adjacent though Nvidia's gross has soared successful the treble and triple digits 4th aft quarter, the institution is inactive successful the aboriginal chapters of the AI story. Nvidia main Jensen Huang has said that $1 trillion of outdated computers request to beryllium updated to accommodate accelerated computing, leaving a batch of country for maturation ahead.