CNBC has reported that renowned billionaire investor Stanley Druckenmiller has slightly backed off his bet on chipmaker giant Nvidia and radically reduced his stake in the company.
CNBC has reported that renowned billionaire investor Stanley Druckenmiller has slightly backed off his bet on chipmaker giant Nvidia and radically reduced his stake in the company.
Druckenmiller said during his visit to CNBC’s “Squawk Box” that he expects artificial intelligence to be hyped in the near term as an investment tool.
Druckenmiller takes a break from Nvidia and AI
The billionaire admitted he reduced his stake in Nvidia in March because he needed a break.
Notably, the investor reduced his stake in Nvidia after the share price jumped from $150 to $900. Druckenmiller stated that he does not plan to act like Warren Buffett and “own things for 10 or 20 years.”
In recent years, Nvidia has focused on large artificial intelligence models created by its server graphics processors. In 2023, Nvidia stock performed very well and was one of the best in the market by performance; it soared a staggering 238%. Already this year, Nvidia shares are up 66%.
Druckenmiller initially set his sights on Nvidia when he was introduced to it by a partner at Duquesne Family Office, who thought AI was going to beat blockchain in the long run.
A month after the billionaire bought a stake in it, OpenAI launched ChatGPT for public use and then increased its position in Nvidia. Still, while he believes AI may be overrated in the short term, Druckenmiller remains optimistic about it in the long term.
“So AI might be a little overrated now, but underrated in the long term,” he said, comparing AI to the Internet in its early stages. He expects big profits to come within four or five years.
Elon Musk issues crucial warning about AI
As previously reported by Guru-Investingtech mogul Elon Musk, founder of the xAI startup that produces the Grok AI chatbot, stated the other day during a public talk that he believes it is vitally important to train AI the right way so that it can be friendly to humans and will encourage cooperation with humanity in the future.
To do this, Musk believes, it is necessary to train the AI to seek the truth and be as curious as possible. Otherwise, it may become hostile towards humans.
