Billionaire Stanley Druckenmiller’s 2023 Portfolio: Top 5 Stock Picks

2. NVIDIA Corporation (NASDAQ:NVDA)

Hedge Fund Stake Value: $219.8 million

Billionaire Stanley Druckenmiller upped his stake in NVIDIA Corporation (NASDAQ:NVDA) by 35% in the first quarter of 2023. His hedge fund now owns a $220 million stake in NVIDIA Corporation (NASDAQ:NVDA). NVIDIA Corporation (NASDAQ:NVDA) has been in the spotlight this year as analysts believe the company would be one of the biggest winners in the AI boom. AI applications and chatbots like ChatGPT need massive processing power to answer and process queries. This is where NVIDIA Corporation (NASDAQ:NVDA) comes in. Earlier this year, UBS analyst Timothy Arcuri said that ChatGPT used 10,000 Nvidia GPUs to train its model. Microsoft Corporation (NASDAQ:MSFT)’s huge investments in OpenAI also went to NVIDIA Corporation (NASDAQ:NVDA) for the purchase of enterprise-grade GPUs like the A100 and H100.

Alger Spectra Fund made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2023 investor letter:

“NVIDIA Corporation (NASDAQ:NVDA) is a leading supplier of graphics processing units (GPUs) for a variety of end markets, such as gaming, PCs, data centers, virtual reality and high-performance computing. The company is leading in most secular growth categories in computing, and especially artificial intelligence and super-computing parallel processing techniques for solving complex computational problems. Simply put. Nvidia’s computational power is a critical enabler of Al and therefore critical to Al adoption, in our view. As such, we believe Nvidia is a long-term high unit volume growth opportunity. During the period, NVIDIA reported fiscal fourth-quarter results that met expectations, as the company navigated. through an inventory correction associated with the broad macroeconomic slowdown. Moreover, management gave fiscal year earnings guidance that was better than analyst estimates. noting strong year-over-year growth in gaming and data centers. Management’s constructive assessment of 2023 prospects. coupled with the rapid rollout and adoption of generative Al offerings, led to positive share price performance.”