Billionaire investor Stanley Druckenmiller has admitted to one of his biggest recent regrets: selling his entire stake in Nvidia. Months after offloading the stock, Druckenmiller now says he wishes he hadn’t, acknowledging the missed opportunity as Nvidia’s value continues to soar.
In an interview with Bloomberg TV, Druckenmiller shared his thoughts candidly: “I’ve made so many mistakes in my investment career. One of them was I sold all my Nvidia.”
Druckenmiller’s Duquesne Family Office gradually sold off its Nvidia holdings earlier this year, even though the investor had been bullish on artificial intelligence (AI) technology, an area where Nvidia has a massive advantage.
According to 13F filings, Druckenmiller reduced his Nvidia stake by 72% in the first quarter of 2023 and continued selling through the months that followed. By the time Nvidia’s stock hit new highs, he had exited the position entirely.
“I own none, and I owned none the last 400 points,” Druckenmiller admitted, referring to Nvidia’s rise in value after he sold his shares. He estimated that he sold when the stock was trading between $800 and $950, referencing prices before Nvidia’s 10-to-1 stock split in June.
Despite his regret, Druckenmiller clarified that his decision to sell wasn’t based on doubts about Nvidia’s potential. Instead, he believed the stock had become too expensive after tripling in value in just a year.
“I thought the valuation was rich,” he explained. Earlier in May, he had also expressed concerns that AI-related investments were becoming “overhyped,” even though he still saw long-term potential in the sector.
However, Nvidia has defied expectations, continuing to rally as demand for its cutting-edge AI chips surges. Year-to-date, Nvidia’s stock has skyrocketed by 174%, leaving many investors, including Druckenmiller, reflecting on missed opportunities.
Though he no longer holds Nvidia stock, Druckenmiller remains invested in AI through other infrastructure-related plays. Still, he’s not ruling out the possibility of owning Nvidia again in the future.
“I think Nvidia is a wonderful company,” he said. “Were the price to come down, we’d get involved again, but right now I’m licking my wounds from a bad sale there.”
Druckenmiller’s honesty about his mistake is a reminder that even the most successful investors occasionally misjudge the market. For now, Nvidia continues to dominate the AI space, and Druckenmiller will be watching closely for a chance to re-enter the stock if the conditions are right.