Druckenmiller Shifts AI Bets from Nvidia and Palantir to Microsoft Amid Valuation Concerns

Billionaire investor Stanley Druckenmiller has liquidated his entire positions in Nvidia and Palantir Technologies during 2024, pivoting to Microsoft as his primary AI investment. The move reflects valuation concerns despite both divested stocks continuing their upward trajectory.

Microsoft's Q2 earnings outperformed expectations with $3.72 EPS on $77.7 billion revenue, while absorbing a $3.1 billion accounting charge from its $13 billion OpenAI investment. Azure revenue surged 40% as the company allocated 74% more capital expenditures to infrastructure, with half dedicated to GPU and CPU acquisitions.

Druckenmiller's investment history reveals strategic timing - having first acquired Nvidia in Q3 2022 before making it Duquesne's largest holding, and establishing a substantial Palantir position in early 2021. His recent portfolio reallocation underscores a preference for Microsoft's established AI infrastructure over pure-play AI equities.