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Is NVIDIA Corp (NVDA) Stanley Druckenmiller’s Best AI Stock Pick?

Insider Monkey recently analyzed billionaire Druckenmiller’s latest Q1’2024 portfolio to see which AI stocks the billionaire was buying. NVIDIA Corp (NASDAQ:NVDA) is part of the 10 Best AI stocks to Buy According to Billionaire Stanley Druckenmiller.

But the interesting question to answer is: Is NVIDIA really the best AI pick of Druckenmiller?

NVIDIA Corp (NASDAQ:NVDA)

Number of Hedge Fund Investors: 173

NVIDIA Corp (NASDAQ:NVDA) ranks 7th in Stanley Druckenmiller’s Q1’2024 portfolio. If you want to take a look at the billionaire’s top stock picks, click to see Druckenmiller’s Family Office portfolio.

After making huge profits on his NVIDIA Corp (NASDAQ:NVDA) stake, which he bought in the fourth quarter of 2022, billionaire Stanley Druckenmiller cut his stake in the AI chips company by 72% in the first quarter of 2024, a move that surprised many. Insider Monkey’s data shows that Druckenmiller loaded up on 582,915 NVIDIA Corp (NASDAQ:NVDA) shares during the fourth quarter of 2022 at an average price of $146.65 per share. Near the end of the first quarter of this year, NVIDIA Corp (NASDAQ:NVDA) stock was hovering around $902 per share. Stanley Druckenmiller also liquidated his call options on NVIDIA Corp (NASDAQ:NVDA) which he’d bought in the fourth quarter of 2023 for $242 million.

Wall Street Continues to Love NVDA

Despite the massive bull run in NVIDIA Corp (NASDAQ:NVDA) shares, Wall Street analysts are continuing to shower the stock with bullish ratings. UBS earlier this month published a list of stocks that are set to benefit from the massive surge in the AI industry, which the firm believes could touch $400 billion in revenue in the next three years. NVIDIA Corp (NASDAQ:NVDA) was part of the list.

NVDA: The Bull Case Based on Catalysts

NVIDIA Corp (NASDAQ:NVDA) is continuing to refresh and update its AI chips product line as demand is skyrocketing. Analysts expect NVIDIA Corp’s (NASDAQ:NVDA) H200 chips and Spectrum-X platform to offer cutting-edge processing and networking solutions for companies that are making generative AI software and applications. NVIDIA Corp (NASDAQ:NVDA) bulls believe that the company’s growth catalysts are strong enough to justify its currently high valuation metrics. After all NVIDIA Corp (NASDAQ:NVDA) still enjoys an 80% market share in the GPU industry, and its products are expected to see high demand in other industries, like automotive, gaming and mobile devices.

NVDA’s New Customer: Elon Musk

NVIDIA Corp’s (NASDAQ:NVDA) “real world” AI segment is thriving. Tesla CEO Elon Musk recently revealed that his company currently has 35,000 H100 chips. Tesla also can become the third-biggest NVIDIA Corp (NASDAQ:NVDA) customer as the EV company plans to have 85,000 Nvidia H100 chips by the end of 2024 to train its AI models.

Valuation Concerns and Risks

However, some circles have voiced concerns on NVIDIA Corp’s (NASDAQ:NVDA) valuation following the eye-popping stock price gains NVIDIA Corp (NASDAQ:NVDA) has enjoyed over the past few months. This comes as major NVIDIA Corp (NASDAQ:NVDA) customers like Meta Platforms, Microsoft, Amazon and Google begin to mull producing AI chips in-house. NVIDIA Corp (NASDAQ:NVDA) is also outsourcing its production to Taiwan Semiconductor, which makes NVIDIA Corp (NASDAQ:NVDA) vulnerable to any geopolitical risks especially when President Biden is upping the ante against China with new traffics and hawkish tone.

Wolfe Research in recently replaced Nvidia Corp (NASDAQ:NVDA) with its competitor AMD in its Alpha List. Wolfe Research cited NVIDIA Corp’s (NASDAQ:NVDA) massive stock price gains year to date as a reason behind this move.

Hedge Fund Sentiment on NVDA

Insider Monkey’s database of 933 hedge funds shows that 173 funds had stakes in NVIDIA Corp (NASDAQ:NVDA). Druckenmiller wasn’t the only hedge fund manager who reduced his stake in NVIDIA Corp (NASDAQ:NVDA) after enjoying massive stock price gains. Insider Monkey’s data shows Ken Griffin’s Citadel Investment Group, Donald Sussman’s Paloma Partners and Paul Tudor Jones’ Tudor Investment Corp decreased their stakes in NVIDIA Corp (NASDAQ:NVDA) by more than 70% each in the first quarter of 2024.

Patient Capital Opportunity Equity Strategy stated the following regarding NVIDIA Corporation (NASDAQ:NVDA) in its first quarter 2024 investor letter:

“This quarter we entered two new positions, while exiting four positions. Our first new position was NVIDIA Corporation (NASDAQ:NVDA), which we bought early in the quarter. Nvidia is the market leader in designing and selling Graphics Processing Units (GPU), which has recently benefited from the insatiable demand of artificial intelligence (AI) models. The company currently captures 92% market share of data center GPUs and grew revenue, earnings and FCF an astounding 126%, 392%, and 610%, respectively, over the last year. While much of the focus is on Nvidia’s market cap reaching $2.3T, up 230% over the last year, the company’s valuation has actually come down over that period. As of 3/31/23, consensus was valuing the company at 61x forward EPS. This compares to today, where the company is being valued at 37x. While yes, we have never seen a company expand their market cap by so much so quickly, we have also never seen a company grow their fundamental earnings and cash generation so quickly (and which is actually expanding faster than valuation). While competitors are working to enter the GPU space, Nvidia has created a moat around their GPUs with their CUDA software offering. While we do expect the large cloud players to continue to move into the market, we think NVDA can continue to demand top market share. With leading edge technology, an increasing innovation cycle and strong cash generation, the company is well positioned for the increased adoption of accelerated computing and artificial intelligence (AI).

Nvidia Corp. (NVDA) was a top performer in the quarter gaining 82.5% in the period. While the company has had an impressive run, gaining 242% over the last year, the valuation has been supported by the impressive growth in Revenue (126%), EPS (392%) and free cash flow (610%) over the last year. The company has solidified its position in the GPU space supported by its proprietary software CUDA. While we expect competition to increase, we think NVDA can continue to maintain top market share. With leading edge technology, an increasing innovation cycle and strong cash generation, the company is well positioned for the increased adoption of artificial intelligence (AI).”

Is Nvidia The Best AI Stock Pick of Stanley Druckenmiller?

NVIDIA Corp (NASDAQ:NVDA) is not the best AI stock pick of Stanely Druckenmiller, based on Insider Monkey’s research.

Click to see Stanley Druckenmiller’s 10 Best AI Stocks to Buy That are Better that Nvidia.

Disclosure:None

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…