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Famed investor Stanley Druckenmiller says he has cut his stake in ai leader Nvidia (NASDAQ:NVDA).
Druckenmiller, who now runs Duquesne Family Office, said on CNBC on Tuesday that the chipmaker was among the positions he recently cut.
Said with NVDA going from $150 to $900, “Guess what? We cut that position, along with many other positions at the end of March.”
“I just needed a break,” he said. “We've had an incredible run. A lot of what we recognized has now been recognized by the market.”
“In the long term we are more optimistic than ever about ai,” he said. But he pointed out that while 20 years ago no one would have thought the Internet would be as big as it has become, the Nasdaq (COMP.IND) (QQQ) still fell 80% in 1999.
“That's not going to happen with ai, but it could rhyme. ai could go through all this capital expenditure to get the reward and while it's increasing day by day, the big reward could be four or five years from now” .
“So ai might be a little overrated now, but underrated in the long term,” Druckenmiller said.
