Druckenmiller's Nvidia Sell: A $1 Billion Regret as AI Demand Soars
1min read Stanley Druckenmiller, the billionaire founder of Duquesne Family Office, recently admitted that selling his Nvidia shares earlier this year was a "big mistake." At 71 years old, Druckenmiller is one of the world's wealthiest individuals with a net worth of approximately $6.9 billion.
Druckenmiller revealed his error during a media interview, stating he sold Nvidia shares at around $80 to $95, adjusted for a 10-for-1 stock split that took place in June. On Wednesday, Nvidia closed at $135.72, reflecting a remarkable rise after climbing 239% last year and an additional 174% since the start of this year. The stock even hit an all-time high earlier this week.
The booming demand for artificial intelligence has significantly benefited Nvidia, which supplies its sought-after graphics processing units (GPUs) to leading cloud providers and developers of key large language models. Earlier this year, Druckenmiller reduced his firm's Nvidia holdings in March, expressing skepticism about the AI hype being potentially overblown in the short term.
Originally, the Duquesne Family Office held approximately 6.18 million Nvidia shares at the beginning of the year, reducing to 1.76 million by the end of March, and dropping further to just 214,000 shares by the end of June. Nvidia had been Druckenmiller's largest holding in Q3 last year, with stakes valued at around $400 million.
Had Druckenmiller maintained his Nvidia position, its current value would be roughly $1.19 billion. While the family office has not yet disclosed its third-quarter holdings, Druckenmiller remarked on the company’s potential, stating, "Nvidia is a great firm, and if prices decline, we might re-engage. But for now, I'm nursing the wound from a poor sell decision."
Nvidia is scheduled to release its quarterly earnings in November, while major clients such as Meta, Microsoft, Amazon, and Alphabet are set to report later this month, potentially shedding light on future chip sales expectations for Nvidia.