Stanley Druckenmiller’s comments sent the stock plummeting.
shares of Nvidia (NVDA -1.72%) The stock dipped sharply today, dropping as much as 10.7% in early trading, but recovered those losses throughout the morning and closed just 1.7% lower.
The movement was sparked by comments from prominent billionaire investor Stanley Druckenmiller.
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What does Druckenmiller say about Nvidia?
Druckenmiller, who ran Duquesne Capital Management funds for nearly 30 years with an impeccable track record, said in an interview on CNBC this morning that he will cut his stake in Nvidia in late March.
“A lot of what we recognized is now recognized by the market,” Druckenmiller said, arguing that it was time to profit from stocks.
The former hedge fund titan was an early recognizer of Nvidia’s potential in the generative AI boom, as his Duquesne family office actively moved into Nvidia stock in the fourth quarter of 2022 when ChatGPT launched. I did.
Mr. Druckenmiller began selling his Nvidia stock in the fourth quarter, but that seems premature considering AI stocks soared again in the first quarter of this year.
We’ll know how much he reduced his stake in Nvidia when the 13F report comes in next week.
Why Nvidia stock rebounded
There was no particular trigger for Nvidia stock’s recovery. Stocks appear to have risen as some investors saw the plunge as a buying opportunity.
Druckenmiller wasn’t particularly bearish on Nvidia, expressing long-term optimism for AI, but seemed content to take profits as the stock has soared since he first started buying. .
Since Nvidia is now valued at over $2 trillion, it’s unlikely we’ll see any further multi-bagging returns from Nvidia, but the stock could continue to outperform. We’ll know more when Nvidia reports its first-quarter earnings later this month.
Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has a position in and recommends Nvidia. The Motley Fool has a disclosure policy.