Stanley Druckenmiller says he’s ‘licking my wounds’ from selling Nvidia too soon
Stanley Druckenmiller at CNBC’s Delivering Alpha on Sept. 28, 2022.
Scott Mlyn | CNBC
Billionaire investor Stanley Druckenmiller said on Wednesday that his decision to sell out of Nvidia this year was a “big mistake.”
“I’ve made so many mistakes in my investment career — one of them was I sold all my Nvidia probably somewhere between $800 and $950,” Druckenmiller said in an interview on Bloomberg. “I own none and I owned none the last 400 points.”
Druckenmiller’s comments do not reflect Nvidia’s 10-for-1 stock split, which went into effect in June. The stock closed Wednesday at $135.72. On a split-adjusted basis, his sales would have taken place at between $80 and $95.
Nvidia has been the primary beneficiary of the artificial intelligence boom, selling its graphics processing units, or GPUs, to top cloud companies and the biggest developers of large language models. The stock soared 239% last year and is up another 174% in 2024, closing at a fresh record on Monday.
Earlier this year, Druckenmiller revealed on CNBC’s “Squawk Box” that he cut his Duquesne Family Office’s position in Nvidia in late March, saying “we’ve had a hell of a run.”
Taking the split into account, Duquesne owned about 6.18 million shares at the start of the year, 1.76 million at the end of the first quarter and 214,000 when the second quarter closed. In the third quarter of last year, Nvidia was his top holding. At the time, he owned 8.75 million shares worth around $400 million.
If he held onto that entire stake, it would currently be worth about $1.19 billion. Duquesne has not released its third-quarter holdings yet.
“It tripled in a year, and I thought the valuation was rich,” Druckenmiller told Bloomberg. “Nvidia is a wonderful company and were the price to come down, we’d get involved again. But right now, I’m licking my wounds from a bad sale.”
Nvidia is expected to release quarterly results in November, but most of its top customers, including Meta, Microsoft, Amazon and Alphabet, will report financials later this month.
Druckenmiller told CNBC in May that Nvidia was “a little overhyped now, but underhyped long term.” He added that he was introduced to Nvidia in 2022, when “I didn’t even know how to spell it.”
Technology
Figure AI sued by whistleblower who warned that startup’s robots could ‘fracture a human skull’
Startup Figure AI is developing general-purpose humanoid robots.
Figure AI
Figure AI, an Nvidia-backed developer of humanoid robots, was sued by the startup’s former head of product safety who alleged that he was wrongfully terminated after warning top executives that the company’s robots “were powerful enough to fracture a human skull.”
Robert Gruendel, a principal robotic safety engineer, is the plaintiff in the suit filed Friday in a federal court in the Northern District of California. Gruendel’s attorneys describe their client as a whistleblower who was fired in September, days after lodging his “most direct and documented safety complaints.”
The suit lands two months after Figure was valued at $39 billion in a funding round led by Parkway Venture Capital. That’s a 15-fold increase in valuation from early 2024, when the company raised a round from investors including Jeff Bezos, Nvidia, and Microsoft.
In the complaint, Gruendel’s lawyers say the plaintiff warned Figure CEO Brett Adcock and Kyle Edelberg, chief engineer, about the robot’s lethal capabilities, and said one “had already carved a ¼-inch gash into a steel refrigerator door during a malfunction.”
The complaint also says Gruendel warned company leaders not to “downgrade” a “safety road map” that he had been asked to present to two prospective investors who ended up funding the company.
Gruendel worried that a “product safety plan which contributed to their decision to invest” had been “gutted” the same month Figure closed the investment round, a move that “could be interpreted as fraudulent,” the suit says.
The plaintiff’s concerns were “treated as obstacles, not obligations,” and the company cited a “vague ‘change in business direction’ as the pretext” for his termination, according to the suit.
Gruendel is seeking economic, compensatory and punitive damages and demanding a jury trial.
Figure didn’t immediately respond to a request for comment. Nor did attorneys for Gruendel.
The humanoid robot market remains nascent today, with companies like Tesla and Boston Dynamics pursuing futuristic offerings, alongside Figure, while China’s Unitree Robotics is preparing for an IPO. Morgan Stanley said in a report in May that adoption is “likely to accelerate in the 2030s” and could top $5 trillion by 2050.
Read the filing here:
-
Sports2 years agoStory injured on diving stop, exits Red Sox game
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports3 years agoButton battles heat exhaustion in NASCAR debut
-
Sports3 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment3 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment1 year agoHere are the best electric bikes you can buy at every price level in October 2024