Billionaire investor Stanley Druckenmiller recently admitted that selling his stake in Nvidia earlier this year was a major mistake. During an interview with Bloomberg, Druckenmiller confessed that he sold all his Nvidia shares when the stock was trading between $800 and $950, missing out on the massive gains that followed.
Nvidia, a leading provider of graphics processing units (GPUs) benefiting from the artificial intelligence boom, saw its stock price surge by 239% last year and an additional 174% in 2024. Druckenmiller’s decision to sell his stake in the company before its 10-for-1 stock split in June cost him potential profits, as the stock closed at $135.72 on a split-adjusted basis.
In a CNBC interview earlier this year, Druckenmiller mentioned that he reduced his position in Nvidia in late March, citing the impressive performance of the stock. Duquesne Family Office, his investment firm, owned about 6.18 million shares of Nvidia at the beginning of the year, but by the end of the second quarter, the position had been significantly reduced to 214,000 shares.
Despite acknowledging Nvidia as a “wonderful company,” Druckenmiller expressed regret over his decision to sell, emphasizing that he believed the valuation was too high at the time. He mentioned that if the price were to drop, he would consider investing in Nvidia again, but for now, he is facing the consequences of his hasty sale.
Looking ahead, Nvidia is set to report its quarterly results in November, with major customers such as Meta, Microsoft, Amazon, and Alphabet also releasing financial reports later this month. Druckenmiller’s reflections on selling Nvidia too soon serve as a reminder of the challenges and uncertainties that come with making investment decisions, even for seasoned professionals like himself.
Despite his disappointment, Druckenmiller remains optimistic about Nvidia’s long-term prospects, describing the company as “a little overhyped now, but underhyped long term.” His experience with Nvidia serves as a valuable lesson in the world of investing, highlighting the importance of thorough research, patience, and a long-term perspective when evaluating potential opportunities in the market.
