## Nvidia Stock: Druckenmiller Regrets Selling, But Sees Opportunity in AI Infrastructure
The AI revolution has propelled Nvidia’s stock (NVDA) to dizzying heights, but one prominent investor is left licking his wounds after missing out on the ride. Stanley Druckenmiller, the chairman and CEO of Duquesne Family Office, has publicly lamented his decision to sell his Nvidia shares.
During an interview with Bloomberg, Druckenmiller confessed, “I’ve made so many mistakes in my investment career — one of them was I sold all my Nvidia probably somewhere between $800 and $950. I think it’s 1300 on that stock.” He was referring to the price before Nvidia’s 10-for-1 stock split in June.
The billionaire investor, known for his astute market insights, revealed he doesn’t currently own any Nvidia shares. “It was a big mistake,” he admitted. While his 13-F filing from the second quarter shows he held 214,060 Nvidia shares, his recent remarks indicate he has since offloaded his entire position.
Druckenmiller explained his rationale for selling, saying that about 18 months ago, when the stock was trading around $300, he envisioned holding it for the long term. However, the stock’s subsequent surge changed his perspective. “What changed is it tripled in a year and I, I thought the valuation was rich,” he elaborated.
Despite his regret, Druckenmiller remains bullish on the future of AI. “There’s still many ways to play AI, particularly the infrastructure that has been built out to support the power needed,” he emphasized. He even hinted at a potential return to Nvidia. “Yes, I think Nvidia is really a wonderful company and were the price to come down, we get involved again,” he stated, adding, “But right now I’m licking my wounds from a bad sale there.”
Nvidia’s meteoric rise in 2023, with a 240% rally, has continued into 2024, adding another 174% to its value. This surge contrasts sharply with the stock’s 2022 performance, when it tumbled over 50%. The company’s first-mover advantage in AI, cutting-edge technology, and strong management team have been key factors in its success. While some critics cite concerns about heavy spending needed to maintain its leadership in the AI race and potential AI bubbles bursting, Nvidia has consistently exceeded expectations.
Looking ahead, Nvidia’s stock is anticipated to experience a further upward bounce in the near term, particularly with its third-quarter earnings scheduled for late November. Wall Street analysts’ price target re-ratings could provide additional support for the stock.
Nvidia’s share price closed Wednesday’s session up 3.13% at $135.72, highlighting the continued investor confidence in the company. Druckenmiller’s confession of his mistake, while acknowledging the potential of AI, serves as a reminder of the volatility and unpredictability of the stock market, even for seasoned investors. His renewed interest in the AI space, focusing on supporting infrastructure, hints at a potential shift in investor focus within the AI sector.