Latest news with #Druckenmiller
Yahoo
a day ago
- Business
- Yahoo
Billionaire Stanley Druckenmiller Just Loaded Up on My Favorite Artificial Intelligence (AI) Stock
The Duquesne Family Office purchased Taiwan Semiconductor shares in Q1. TSMC is expected to deliver strong growth over the next five years. The stock still trades at an attractive valuation. 10 stocks we like better than Taiwan Semiconductor Manufacturing › Individual investors should monitor the activities of some of the most successful investors. Billionaire hedge fund managers have access to more resources and information than individual investors, and following them is a great way to confirm decisions you've already made or generate ideas. One billionaire I follow is Stanley Druckenmiller, who runs the Duquesne Family Office. Every quarter, funds with more than $100 million in holdings must report their holdings at the end of the quarter. Then that information is made available to the public 45 days later in a 13-F form. The latest round of those was released on May 15 and included some valuable information. The Duquesne Family Office loaded up on my favorite way to invest in the artificial intelligence (AI) arms race: Taiwan Semiconductor (NYSE: TSM), also referred to as TSMC. I think this is a genius move by Druckenmiller. The Duquesne Family Office didn't just buy some shares of TSMC; it loaded up. Prior to Q1, it owned just over 100,000 shares of the company. It has massively increased its position this quarter and now owns just shy of 600,000 shares. Its TSMC stake now makes up about 3.33% of its total holdings and is one of its 10 largest positions. So what makes it so bullish on Taiwan Semiconductor? TSMC is the world's largest contract chip manufacturer, able to produce chips based on the unique designs of its customers. This is a mutually beneficial relationship, as this way clients don't need to maintain factories or spend resources on developing chip manufacturing technology, and TSMC doesn't need to design or market its chips. Based on how TSMC is positioned, the company doesn't need a winning AI technology to win the AI arms race; it just needs its clients to spend heavily on the computing power that fuels it. An investment in TSMC is a bet that the world will use more computing power and more advanced chips over time. That's a no-brainer, which is why the company is at the top of my list for best AI stocks in which to invest. Because of Taiwan Semiconductor's unique position of being a chip supplier to nearly every company involved in the AI arms race, it has unparalleled access to information about demand. Chip orders are placed years in advance, as evidenced by TSMC's Arizona factory already selling out production through 2027. So when management gives a projection, investors would be wise to listen. TSMC's management believes that AI demand will be so strong that its AI-related revenue will grow at a 45% compounded annual growth rate (CAGR) over the next five years. Overall revenue should increase at nearly a 20% CAGR, providing outstanding growth for investors. All of this information contributes to the Duquesne Family Office loading up on shares during Q1, but the last date at which it could have made this purchase was March 31, when the markets hadn't recovered from tariff-induced fears. So is it still a good buy now? Despite Taiwan Semiconductor's stock recovering in the past few weeks, it's still trading at a fairly attractive valuation. At less than 21 times forward earnings, TSMC trades at a discount to the broader market, as measured by the S&P 500 (SNPINDEX: ^GSPC), which trades for around 22.1 times forward earnings. Although you can't buy TSMC stock for as little as you could just a few weeks ago, it's still cheaper than the broader market and is expected to grow its revenue much faster than the market rises (around 10% per year). That's a recipe for a market-beating stock, which makes Taiwan Semiconductor a smart buy here. Before you buy stock in Taiwan Semiconductor Manufacturing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Taiwan Semiconductor Manufacturing wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,389!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $830,492!* Now, it's worth noting Stock Advisor's total average return is 982% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Keithen Drury has positions in Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy. Billionaire Stanley Druckenmiller Just Loaded Up on My Favorite Artificial Intelligence (AI) Stock was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- General
- Yahoo
Birds were nesting in the Arctic during age of dinosaurs, scientists discover
The Arctic might evoke images of polar bears and seals, but 73m years ago it was a dinosaur stomping ground. Now fossil hunters say these beasts shared their turf with a host of different birds. Researchers believe their discovery of more than 50 bird fossils from the Prince Creek formation in Alaska is the oldest evidence of birds nesting in polar regions, pushing back the date by more than 25m years. 'The previous oldest evidence for polar nesting is a penguin colony from the Eocene of Antarctica [that lived about 46.5m years ago],' said Lauren Wilson, first author of the work from Princeton University. More than 200 species of bird nest in the Arctic today, with the researchers saying they are crucial members of the ecosystem, helping with essential tasks such as pollination and seed dispersal. And the latest findings suggest their presence is nothing new. 'These new fossils fill a major gap in our understanding of bird evolution,' said Prof Patrick Druckenmiller, director of the University of Alaska Museum of the North and a co-author of the study published in the journal Science. While the earliest birds emerged in the Late Jurassic, about 150m years ago, the delicate nature of bird bones means such animals are rare in the fossil record. 'Prior to this work, and with the exception of a few footprints, bird fossils weren't known from Alaska,' said Druckenmiller. The discovery involved far more than mere good fortune, with the team carefully excavating bones as well as washing and sieving material from small, sandy deposits to isolate tiny fossils, many of which were less than 2mm in size. 'It was literally like panning for gold, except bird bones are our prize,' said Druckemiller. Wilson added that many of the bones were from embryos or hatchlings. At least one species of bird, she said, belonged to a now-extinct group called Ichthyornithes, and would have resembled a toothed seagull, while the researchers also found at least one member of another extinct group called Hesperornithes: foot-propelled diving birds with teeth. Many of the fossils came from toothless birds that may have resembled ducks. That, the team note, is significant because features such as a lack of teeth are a hallmark of Neornithes, the group that includes all living birds and their most recent common ancestor. It suggests the prehistoric birds nesting in the Arctic were close relatives of modern birds. Druckenmiller said that, like the Arctic today, the Prince Creek ecosystem of 73m years ago would have experienced about six months of continuous daylight in the summer, during which it would have been very green. As a result there would have been an abundance of food. However, the winter would have been chilly. 'While [winters were] not as harsh as today, year-round residents would have to endure freezing temperatures, occasional snowfall, and about four months of continuous winter darkness,' he said. Wilson said the newly discovered fossils showed the birds were breeding in the Arctic, but she said it was unclear if they spent the winter there, adding it was highly likely at least some of them were migratory. Steve Brusatte, a professor of palaeontology and evolution at the University of Edinburgh who was not involved in the work, said that while the fossils discovered by the team were 'absolutely minuscule', they told a huge story. 'These fossils show that birds were already integral parts of the these high-latitude communities many tens of millions of years ago, and thus that these communities are a long-term norm of Earth history, not a recent ecological innovation of modern times,' he said.
Yahoo
2 days ago
- Business
- Yahoo
After Saying Selling Nvidia Stock Was a "Big Mistake," Billionaire Stanley Druckenmiller Just Increased His Fund's Stake by 457% in This Other Artificial Intelligence (AI) Semiconductor Stock
Druckenmiller previously admitted that he thinks his fund sold Nvidia stock too early. Per recent filings, the billionaire has just doubled down on another chip opportunity. 10 stocks we like better than Taiwan Semiconductor Manufacturing › It's easy to think that institutional money managers somehow possess knowledge that's superior to the rest of the investment community. After all, these billionaires are called "smart money" for a reason. What I find helpful, though, is when portfolio managers admit that they may have made a mistake. To me, this sheds light into how these investors think, and what strategies they may hone in order to mitigate making the same oversight. Stanley Druckenmiller of the Duquesne Family Office admitted that he sold Nvidia stock far too early -- going as far as to say that he made a "big mistake" in doing so. Since making these comments, Druckenmiller has definitely had multiple chances to get back on the Nvidia train. After all, Cathie Wood of Ark Invest did just that after she too sold the semiconductor darling prior to its epic rally a couple of years ago. Nevertheless, recent filings indicate that Druckenmiller may have accepted his decision with Nvidia and is seeking opportunity elsewhere. Let's dig into the new artificial intelligence (AI) chip stock that the Duquesne Family Office just increased its stake in by a whopping 457%. Now may be a lucrative time to follow Druckenmiller's lead. Per its most recent 13F filing, the Duquesne Family Office recently plowed into Taiwan Semiconductor Manufacturing (NYSE: TSM) stock. In the table, I've summarized the fund's position in TSMC over the last year: Category Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Shares owned 0 0 57,355 107,515 598,780 Data source: Hedge Follow. Table by author. Sometimes when a hedge fund increases its position in a particular stock, you can begin identifying a pattern by looking at prior filings. In this case, however, I don't think these dynamics really hold up. A year ago, Druckenmiller's portfolio had zero exposure to Taiwan Semi. And while the firm did buy the stock during the previous two quarters, the position itself was relatively nominal. Looked at a different way, the most recent purchase of TSMC stock during Q1 is a clear outlier compared to the previous two quarters. While Taiwan Semi might not receive nearly as much coverage as Nvidia, Advanced Micro Devices, or Broadcom, don't be fooled by its quiet reputation. Companies such as Nvidia, AMD, Broadcom, Amazon, Qualcomm, Apple, and many more all design or buy chips and integrated network equipment for AI data centers. Where TSMC comes into play is that they actually manufacture the equipment that is designed by these companies. So while Nvidia and its cohorts get to sell the best shovels that money can buy during the AI gold rush, Taiwan Semi is in the background actually making the shovels. In other words, a good chunk of the AI chip opportunity hinges on TSMC's ability to manufacture these products. What's even more encouraging is that Taiwan Semi is investing heavily into infrastructure in an effort to maintain its lead over the competition. The company has already built factories here in the U.S., and has plans to double down on this initiative over the next few years. These investments are strategic, as they should allow for more efficiencies and improved supply chain logistics with domestic chip partners -- a strategy that I think will further cement TSMC's market share lead. Wall Street seems to be bullish on Taiwan Semi, too. Per these estimates, analysts are forecasting impressive growth across both revenue and profits for TSMC over the next few years. I see these projections as a proxy for continued robust demand for AI chips, and Taiwan Semi's ability to win business over the competition such as Intel or Samsung. Right now, Taiwan Semiconductor's shares trade at a forward price-to-earnings (P/E) multiple of 20.8 -- essentially identical to its five-year average. Given how influential TSMC's foundry services are to the broader chip narrative, it's a little perplexing to see the company's forward valuation ratios trading in line with levels prior to the AI revolution. I think the recent valuation compression in TSMC can be attributed to two primary factors: uncertainty around tariff policies and geopolitical tensions with China. While I'll acknowledge both as potential risk factors, I think the bearish narrative surrounding each of them is overblown. Despite ongoing trade negotiations, demand for AI infrastructure remains incredibly high. These dynamics bode well for TSMC. Moreover, if management were questioning the long-term growth trajectory of the company, I'd be suspicious that it would be looking to expand its footprint beyond Asia. To me, Taiwan Semiconductor is humming along just fine -- and I don't see its tailwinds slowing down anytime soon. For these reasons, investors may want to follow Druckenmiller's lead and take advantage of Taiwan Semi's attractive price levels right now. More importantly, unlike what Druckenmiller did with Nvidia, TSMC looks primed for years to come, and growth investors may want to hold on tight for the long haul. Before you buy stock in Taiwan Semiconductor Manufacturing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Taiwan Semiconductor Manufacturing wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adam Spatacco has positions in Amazon, Apple, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Apple, Intel, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy. After Saying Selling Nvidia Stock Was a "Big Mistake," Billionaire Stanley Druckenmiller Just Increased His Fund's Stake by 457% in This Other Artificial Intelligence (AI) Semiconductor Stock was originally published by The Motley Fool
Yahoo
2 days ago
- Business
- Yahoo
After Saying Selling Nvidia Stock Was a "Big Mistake," Billionaire Stanley Druckenmiller Just Increased His Fund's Stake by 457% in This Other Artificial Intelligence (AI) Semiconductor Stock
Druckenmiller previously admitted that he thinks his fund sold Nvidia stock too early. Per recent filings, the billionaire has just doubled down on another chip opportunity. 10 stocks we like better than Taiwan Semiconductor Manufacturing › It's easy to think that institutional money managers somehow possess knowledge that's superior to the rest of the investment community. After all, these billionaires are called "smart money" for a reason. What I find helpful, though, is when portfolio managers admit that they may have made a mistake. To me, this sheds light into how these investors think, and what strategies they may hone in order to mitigate making the same oversight. Stanley Druckenmiller of the Duquesne Family Office admitted that he sold Nvidia stock far too early -- going as far as to say that he made a "big mistake" in doing so. Since making these comments, Druckenmiller has definitely had multiple chances to get back on the Nvidia train. After all, Cathie Wood of Ark Invest did just that after she too sold the semiconductor darling prior to its epic rally a couple of years ago. Nevertheless, recent filings indicate that Druckenmiller may have accepted his decision with Nvidia and is seeking opportunity elsewhere. Let's dig into the new artificial intelligence (AI) chip stock that the Duquesne Family Office just increased its stake in by a whopping 457%. Now may be a lucrative time to follow Druckenmiller's lead. Per its most recent 13F filing, the Duquesne Family Office recently plowed into Taiwan Semiconductor Manufacturing (NYSE: TSM) stock. In the table, I've summarized the fund's position in TSMC over the last year: Category Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Shares owned 0 0 57,355 107,515 598,780 Data source: Hedge Follow. Table by author. Sometimes when a hedge fund increases its position in a particular stock, you can begin identifying a pattern by looking at prior filings. In this case, however, I don't think these dynamics really hold up. A year ago, Druckenmiller's portfolio had zero exposure to Taiwan Semi. And while the firm did buy the stock during the previous two quarters, the position itself was relatively nominal. Looked at a different way, the most recent purchase of TSMC stock during Q1 is a clear outlier compared to the previous two quarters. While Taiwan Semi might not receive nearly as much coverage as Nvidia, Advanced Micro Devices, or Broadcom, don't be fooled by its quiet reputation. Companies such as Nvidia, AMD, Broadcom, Amazon, Qualcomm, Apple, and many more all design or buy chips and integrated network equipment for AI data centers. Where TSMC comes into play is that they actually manufacture the equipment that is designed by these companies. So while Nvidia and its cohorts get to sell the best shovels that money can buy during the AI gold rush, Taiwan Semi is in the background actually making the shovels. In other words, a good chunk of the AI chip opportunity hinges on TSMC's ability to manufacture these products. What's even more encouraging is that Taiwan Semi is investing heavily into infrastructure in an effort to maintain its lead over the competition. The company has already built factories here in the U.S., and has plans to double down on this initiative over the next few years. These investments are strategic, as they should allow for more efficiencies and improved supply chain logistics with domestic chip partners -- a strategy that I think will further cement TSMC's market share lead. Wall Street seems to be bullish on Taiwan Semi, too. Per these estimates, analysts are forecasting impressive growth across both revenue and profits for TSMC over the next few years. I see these projections as a proxy for continued robust demand for AI chips, and Taiwan Semi's ability to win business over the competition such as Intel or Samsung. Right now, Taiwan Semiconductor's shares trade at a forward price-to-earnings (P/E) multiple of 20.8 -- essentially identical to its five-year average. Given how influential TSMC's foundry services are to the broader chip narrative, it's a little perplexing to see the company's forward valuation ratios trading in line with levels prior to the AI revolution. I think the recent valuation compression in TSMC can be attributed to two primary factors: uncertainty around tariff policies and geopolitical tensions with China. While I'll acknowledge both as potential risk factors, I think the bearish narrative surrounding each of them is overblown. Despite ongoing trade negotiations, demand for AI infrastructure remains incredibly high. These dynamics bode well for TSMC. Moreover, if management were questioning the long-term growth trajectory of the company, I'd be suspicious that it would be looking to expand its footprint beyond Asia. To me, Taiwan Semiconductor is humming along just fine -- and I don't see its tailwinds slowing down anytime soon. For these reasons, investors may want to follow Druckenmiller's lead and take advantage of Taiwan Semi's attractive price levels right now. More importantly, unlike what Druckenmiller did with Nvidia, TSMC looks primed for years to come, and growth investors may want to hold on tight for the long haul. Before you buy stock in Taiwan Semiconductor Manufacturing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Taiwan Semiconductor Manufacturing wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adam Spatacco has positions in Amazon, Apple, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Apple, Intel, Nvidia, Qualcomm, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom and recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy. After Saying Selling Nvidia Stock Was a "Big Mistake," Billionaire Stanley Druckenmiller Just Increased His Fund's Stake by 457% in This Other Artificial Intelligence (AI) Semiconductor Stock was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
After Selling Nvidia, Billionaire Stanley Druckenmiller Unloaded Another One of Wall Street's Hottest Artificial Intelligence (AI) Stocks. Is It Time For You to Do the Same?
The billionaire fund manager turned heads when he dumped Nvidia even as peers couldn't stop buying it. While he has since called that decision a "big mistake," he just sold yet another scorching hot AI darling. This time Druckenmiller may be right, as valuation trends in the AI realm are becoming harder to justify. 10 stocks we like better than Palantir Technologies › Stanley Druckenmiller is a billionaire investor who manages capital at his fund, the Duquesne Family Office. Over the past few years, he has made some eyebrow-raising moves related to investing in artificial intelligence (AI) stocks. Perhaps the biggest head-scratcher was his selling Nvidia stock when everyone else seemed to be buying. In fairness, though, Druckenmiller has since expressed some regret about exiting his Nvidia position. While Nvidia has been one of the largest beneficiaries of a bullish AI narrative, it's far from the only growth stock out there. Ironically, however, Druckenmiller just dumped his fund's entire stake in yet another scorching hot AI stock. Will Druckenmiller come to regret this decision, too? I don't think so. Read on to find out which AI darling the Duquesne Family Office just exited, and learn why I think this was a savvy decision. According to its most recent 13F filing, the Duquesne Family Office has completely exited its position in Palantir Technologies (NASDAQ: PLTR). In the table below, I've summarized Druckenmiller's exposure to Palantir stock over the last year. Category Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Shares 769,965 769,965 41,710 41,710 0 Data source: Per the data above, it appears that the majority of Duquesne's exposure to Palantir was trimmed in the middle of last year. Over the last six months, Druckenmiller's fund held a small position in Palantir stock -- enjoying record gains as the company remained one of the best-performing stocks across the S&P 500 and Nasdaq-100 indices. It begs the question: Why sell now? Since going public in 2020, Palantir stock has gained well over 1,000%. That's an unusually high return in this short a time duration. However, looking at Palantir's parabolic rise through this lens is a bit misleading. The reason I say that is because the majority of gains in the stock have actually occurred over the last 18 months. When you look at it that way, it becomes even more questionable just how much further the stock can run right now. In the graph above, I've benchmarked Palantir's valuation against a peer set of high-growth software stocks on a price-to-sales (P/S) basis. Not only is Palantir the obvious outlier here, but just look at how much expansion its valuation multiples have experienced over the last year relative to its peers. As of the closing bell on May 23, Palantir boasted a market capitalization of $291 billion -- considerably more than Salesforce (which I predicted would happen), despite being a much smaller, less diversified, and less profitable business. In my eyes, Druckenmiller isn't going to roll the dice on any more momentum fueling Palantir. I think he decided to take his gains and redeploy capital into more appropriately valued businesses. One of the secrets to investing is that there is never really a perfect time to sell a stock. What I would point out about Palantir's valuation right now is that its P/S multiple is more than double the levels that Amazon and Cisco peaked at during the dot-com bubble, and considerably higher than where Nvidia reached throughout the AI revolution. I bring this up because as sobering as it may be to realize, even the hottest growth stocks experience pullbacks from time to time. As Palantir stock continues to rocket higher, I suspect expectations will rise around its quarterly earnings results. This presents a risk in that Palantir could deliver a monster earnings report, but ultimately fail to live up to unjustifiably lofty expectations -- hence, the stock could drop off a cliff instantly. While I remain a long-term bull, I wouldn't blame investors who trim their Palantir positions right now. One prudent approach could be to sell enough to at least recoup your initial investment. Another strategy could be to collect some gains if you're up by 15% or more on your position (essentially double the long-run average annual return of the S&P 500). Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,761!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,263!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adam Spatacco has positions in Amazon, Nvidia, and Palantir Technologies. The Motley Fool has positions in and recommends Amazon, Cisco Systems, CrowdStrike, Datadog, MongoDB, Nvidia, Palantir Technologies, Salesforce, ServiceNow, and Snowflake. The Motley Fool has a disclosure policy. After Selling Nvidia, Billionaire Stanley Druckenmiller Unloaded Another One of Wall Street's Hottest Artificial Intelligence (AI) Stocks. Is It Time For You to Do the Same? was originally published by The Motley Fool
