Billionaire Stanley Druckenmiller is Buying and Selling These 10 AI Stocks

4. NVIDIA Corp (NASDAQ:NVDA)

Billionaire Stanley Druckenmiller’s Stake Value: $26,445,000 (-88% From the First Quarter)

Billionaire Druckenmiller cut his stake in NVDA by 88% in the second quarter.

Oppenheimer Asset Management recently gave a Buy rating to Nvidia (NASDAQ:NVDA).

“Key positives for NVDA remain the stock’s bullish trend, high-momentum score, and portfolio tailwinds from a relatively strong Technology sector. In terms of trading, NVDA has inflected positively above the bullish slope of its 200-day average indicating a resumption of the stock’s uptrend, in our view,” the firm said.

However, Aswath Damodaran, NYU Stern School of Business Professor of Finance, reiterated his NVIDIA Corp (NASDAQ:NVDA) thesis on a latest program on CNBC, calling the stock overvalued.

“NVIDIA Corp (NASDAQ:NVDA) is an amazing company, great growth, amazing cash flow, superb margins, but you are paying a premium price even given all of those pluses,” Damodaran said.

Asked what’d be a better buy than NVDA, Damodaran said AMZN is a better stock.

“Given the earnings and their cash flows if I had to buy a stock now and you forced me to a buy a big tech, I’d rather own Amazon I’d buy Amazon than buy Nvidia right now,” Damodaran added.

Aoris International Fund stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its Q2 2024 investor letter:

“If Information Technology was the dominant sector for the quarter, NVIDIA Corporation (NASDAQ:NVDA), which is the largest supplier of microprocessors used for generative AI applications, was the dominant company. NVIDIA’s share price rose by a third in the quarter and has increased by 255% so far this year. Since the beginning of 2023, its market value has risen by 8.3x, or $4.3 trillion, making NVIDIA the third largest company in the world by this measure.

As a result of the unusually strong stock price performance from NVIDIA and a few other large companies, equity markets have become increasingly concentrated. You can see this in the chart below, which shows that on 30 June, 27% of the market value of the 500 largest US companies was attributable to just five companies, more than twice the average of the last 20 years.

The composition of the Aoris International Fund will always be very different to that of the broader equity market. There will be periods, such as the most recent quarter, where this contributes to our performance lagging that of our benchmark. When it comes to NVIDIA and other AI-centric companies, rapid growth is exciting, but it makes it difficult for us to judge what is normal. Our preference is to own established leading companies where we can make a more confident, evidence-based judgement about their growth and profitability.”