Stanley Druckenmiller, a prominent billionaire investor known for his impressive track record, has made significant changes to his portfolio.
Over his 30-year career, including 12 years as a portfolio manager for George Soros, Druckenmiller achieved average annual returns of 30%, as reported by Hedge Fund Alpha.
Currently managing his family’s fund, Duquesne Capital Management, Druckenmiller has reduced his stake in Tesla (TSLA) by about 50%, now holding approximately 18.8 million shares.
This move comes as Tesla’s stock, which soared after Donald Trump’s election, has faced challenges. The company’s core electric vehicle business has struggled, raising concerns about CEO Elon Musk’s political engagements.
Druckenmiller is a strong advocate for artificial intelligence (AI) but remains cautious about valuations. He previously sold shares of Nvidia when he deemed its valuation unsustainable.
Tesla has consistently traded at high valuations due to Musk’s influential brand and the company’s ambitious initiatives, such as full self-driving technology and the Optimus robots.
Looking ahead, a crucial full self-driving demonstration in Austin this June could reignite investor interest, but Tesla’s core business, particularly in China, faces stiff competition from companies like BYD.
In a notable shift, Druckenmiller has also more than quadrupled his investment in Taiwan Semiconductor (TSM), acquiring an additional 491 million shares.
Taiwan Semiconductor is a leading manufacturer of graphics processing units (GPUs) and plays a critical role in powering AI applications.
Nvidia’s CEO, Jensen Huang, has praised Taiwan Semiconductor as the premier chip manufacturer globally, emphasizing its importance in the supply chain. In its latest earnings report, Taiwan Semiconductor exceeded Wall Street expectations and projected mid-20s revenue growth in 2025, largely driven by AI demand.
Despite facing challenges from U.S. export restrictions, the stock remains reasonably valued, trading at a forward earnings multiple of 18, which is competitive within the AI sector.
