Billionaire Stanley Druckenmiller Still Isn’t Buying Nvidia. But He Recently Picked Up Shares of This AI Stock That’s Among the Cheapest of the Magnificent Seven. | The Motley Fool

Stanley Druckenmiller, who oversees $4.4 billion at the Duquesne Family Office, owned Nvidia (NVDA +0.94%) stock, but sold all of his shares in 2024. At the time, he considered the AI giant richly valued, though he did express some regret about his move — and said he would consider buying the stock again at a lower valuation.

Since that time, Nvidia’s valuation has dropped considerably. It now trades for about 24x forward earnings estimates — back in 2024, it traded for more than 48x estimates.

Still, Druckenmiller hasn’t returned to Nvidia stock yet. Instead, showing a focus on value, the billionaire recently bought shares of the following player, one that’s been among the cheapest of the Magnificent Seven tech stocks.

Proven expertise

Investors keep a close eye on Druckenmiller’s moves because he’s proven his expertise over the long term. This top investor ran Duquesne Capital Management for three decades and delivered an average annual return of 30% without any years of losing money. After retiring, he went on to run the Duquesne Family Office — as he files quarterly 13F filings with regulators, a requirement for all managers of more than $100 million, we continue to get frequent glimpses into this investing expert’s strategy.

As mentioned, Druckenmiller benefited from part of Nvidia’s growth story but sold the shares as they gained in valuation. Nvidia has been one of the…