Nvidia Corp (NASDAQ: NVDA) is in the red at writing after Stanley Druckenmiller announced to have trimmed his stake in the chipmaker.
Why did Druckenmiller cut his position in Nvidia stock?
The billionaire investor lowered his exposure to the semiconductor behemoth as the stock has “had a hell of a run”.
He was first introduced to $NVDA in the back half of 2022 – and “increased the position substantially” when OpenAI rolled out ChatGPT.
The news arrives only days before Nvidia is scheduled to report its financial results for the first quarter. Consensus is for it to earn $5.14 a share – up many folds from 88 cents per share a year ago.
Nvidia stock has gained a whopping 90% since the start of 2024.
Watch here: https://www.youtube.com/embed/3muL8l5AgQY?feature=oembed
Stanley Druckenmiller remains bullish on AI
Stanley Druckenmiller trimmed his stake in Nvidia as artificial intelligence may be a bit overhyped in the near term.
But he continues to see artificial intelligence as underhyped for the long term. On CNBC’s “Squawk Box”, the former hedge fund manager said:
AI could rhyme with the internet. As we go through all this capital spending we need to do the payoff while it’s incrementally coming in by the day. The big payoff might be four to five years from now.
In March, $NVDA revealed the “world’s most powerful AI chip” (read more). GB200 or the first of its Blackwell series of GPUs cuts cost and energy consumption by 25 times versus its predecessor – the H100. Wall Street currently has a consensus “buy” rating on Nvidia shares.
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