Druckenmiller sells AI stocks, invests in turnaround companies

Billionaire Stanley Druckenmiller, head of the Duquesne Family Office, has sold off significant shares of popular AI stocks Palantir and Nvidia. Instead, he is focusing on three companies that are undergoing successful turnarounds. Druckenmiller’s fund has offloaded 95% of its stake in Palantir and completely sold out its holdings in Nvidia over the past year. Both stocks had seen dramatic increases in value, but Druckenmiller likely decided to secure profits as valuation concerns emerged. Historically, stocks in emerging trends like AI can become overvalued, and there is worry that an AI bubble could burst. The billionaire is now investing heavily in Philip Morris International, Warner Bros. Discovery, and Teva Pharmaceutical Industries. Philip Morris has transformed its business with smoke-free products, which are boosting sales and profits, despite cigarette sales declining in some markets. Druckenmiller has also bought millions of shares in Warner Bros. Discovery. The company is expanding its streaming services and has improved its debt situation significantly. With a growing subscriber base, prospects for future profit look good. Teva Pharmaceutical is another focus for Druckenmiller. After overcoming hefty legal issues and high debt levels, the company has been working on improving its financial health and returning to growth. The reduction in debt and shift toward higher-margin drug development indicates a promising future. Druckenmiller's shift away from high-flying AI stocks towards companies with established recovery plans shows a strategy focused on stability and potential long-term growth.