Stanley Druckenmiller's Duquesne Family Office closed out its Broadcom, Intel, and Micron Technology positions in the second quarter and opened a new stake in Advanced Micro Devices. The move points to a bet on AMD's growing role in AI data centers as CPUs take on a bigger part in agentic AI.
Stanley Druckenmiller's Duquesne Family Office closed out its positions in Broadcom, Intel, and Micron Technology in the second quarter, dumping stakes that had represented 1.8%, 0.5%, and 0.2% of the portfolio, respectively. The family office redirected that capital into Advanced Micro Devices, buying 72,900 shares that now make up 0.8% of the portfolio.
A quarterly filing tracks a $5.2 billion portfolio
Druckenmiller retired from active fund management years ago and now runs Duquesne Family Office, where he oversees $5.2 billion in 13F securities. Managers overseeing more than $100 million must report their holdings to the Securities and Exchange Commission each quarter on Form 13F, giving outside investors a look into their strategies. Over his 30-year career at Duquesne Capital Management, Druckenmiller produced a 30% average annual return without a single money-losing year.
Broadcom, Intel, and Micron still play AI roles
Broadcom, Intel, and Micron each hold a role in the AI buildout. Broadcom makes routers, switches, and custom AI chips, which has helped its revenue jump in recent quarters, though the stock has lost some momentum in recent months.
Intel fell behind early in the AI race but has emerged as a recovery story, helped by its position in the CPU market. Micron's memory-chip business is booming amid tight supply and rising prices, which has lifted its revenue.
Why AMD may have won the trade
Druckenmiller hasn't explained the switch, but a shift in the AI market's focus offers a possible reason. CPUs now power agentic AI, the process by which an AI agent works through a problem and takes steps to solve it, and agentic AI is seen as the next major growth area. Nvidia still dominates the GPU market, but AMD has expanded its data center business, where its revenue stands at $6.7 billion versus $89 billion at Nvidia, leaving the smaller company more room to grow.
Fool contributor Adria Cimino called AMD, trading at 66 times forward earnings estimates, a bit pricey at the moment for value-focused investors, but said it is on track to play a big role in the AI story as CPUs take on a larger part in agentic AI.
Source: The Motley Fool
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