Stanley Druckenmiller Sells All Nvidia and Palantir Shares, Adds Taiwan Semiconductor to Portfolio

TLDR

Billionaire Stanley Druckenmiller sold all shares of Nvidia and Palantir Technologies, two leading AI stocks Druckenmiller increased his position in Taiwan Semiconductor Manufacturing (TSMC) by 457% in Q1 2025 TSMC became Duquesne Family Office’s ninth-largest position by market value Druckenmiller also added over 1 million shares of Flutter Entertainment and started a new position in DocuSign Analysts suggest concerns about competition, potential AI bubble, and high valuations may have influenced Druckenmiller’s decision to exit Nvidia and Palantir

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Billionaire investor Stanley Druckenmiller has made a major shift in his artificial intelligence investment strategy, selling all shares of market darlings Nvidia and Palantir while substantially increasing his position in Taiwan Semiconductor Manufacturing (TSMC).

Taiwan Semiconductor Manufacturing Company Limited (TSM)

According to recent SEC filings, Druckenmiller’s Duquesne Family Office completely exited its positions in both Nvidia and Palantir Technologies. The fund disposed of all 9.5 million shares of Nvidia between June 2023 and June 2024, and sold its entire stake of nearly 770,000 Palantir shares between March 2024 and March 2025.

This move comes despite the stocks’ stellar performance. Since early 2023, Nvidia shares have risen by 827% while Palantir stock has surged an impressive 1,920%.

Instead, Druckenmiller has turned his attention to TSMC. During the first quarter of 2025, he purchased 491,265 shares of the chip fabrication giant, increasing his fund’s stake by 457% compared to the end of December 2024.

The move made TSMC the ninth-largest position by market value in Duquesne Family Office’s portfolio. The company plays a crucial role in AI chip production, manufacturing semiconductors used in AI-accelerated data centers.

Potential Reasons for the Strategy Shift

Market watchers point to several factors that may have influenced Druckenmiller’s decision to exit Nvidia and Palantir. For Nvidia, there are growing concerns about increased competition in the AI chip space.

Many of Nvidia’s largest customers are now developing their own AI-GPUs and solutions for use in data centers. While these internally developed chips may not match the computing power of Nvidia’s advanced offerings, they are expected to be cheaper and more readily available.

Nvidia’s declining gross margin suggests its pricing power has begun to wane. The company also faces the risk of an AI bubble forming and bursting, with over 90% of its fiscal fourth-quarter revenue coming from its data center segment.

For Palantir, valuation concerns may have played a role in Druckenmiller’s exit. The company currently trades at a price-to-sales ratio of 103, well above the historical ceiling of 30 to 40 for companies leading game-changing innovations over the past three decades.

TSMC’s Diversified Business Model

TSMC may have attracted Druckenmiller due to its more diversified business model compared to Nvidia and Palantir. While the company is ramping up its chip-on-wafer-on-substrate (CoWoS) capacity for AI applications from 35,000 monthly units in 2024 to an expected 135,000 units by 2026, it has a broader customer base.

Beyond Nvidia, TSMC also serves Advanced Micro Devices and Broadcom, which are increasing their AI-chip production. Additionally, the company produces chips and components for smartphones, wireless internet-connected devices, and next-generation vehicles.

For example, TSMC is the primary manufacturer of processors used in Apple’s iPhone. This diversity of operations means TSMC is not solely tied to the AI revolution, potentially providing some insulation if an AI bubble were to burst.

Additional Q1 Investments

Druckenmiller didn’t limit his first-quarter purchases to TSMC. SEC filings reveal he also added over 1 million shares of Flutter Entertainment, making it the 11th-largest holding in his portfolio.

Flutter Entertainment owns the popular FanDuel brand, which grew its monthly users by 11% year over year to 4.3 million by the end of March 2025, capturing 43% of the U.S. sports betting market.

Druckenmiller also initiated a new position in DocuSign valued at $87.5 million, making it his 10th largest holding. Despite operating in the competitive e-signature space, DocuSign continues to show growth, with first-quarter revenue up 7% year over year and impressive free cash flow representing 33% of total revenue.

Taiwan Semiconductor $TSM just reported April sales of $11.6 Billion up 48.1% YoY pic.twitter.com/fTUu2FdYMX

— Evan (@StockMKTNewz) May 9, 2025

While TSMC is now Druckenmiller’s largest holding among these three stocks, it still represents just 3.2% of his overall portfolio, highlighting his approach to risk management even when making major investment shifts.

The first-quarter filings provide a clear picture of Druckenmiller’s evolving investment strategy as he navigates the rapidly changing landscape of AI and technology investments.

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