Stanley Druckenmiller's Duquesne Capital closed its positions in Micron and Intel during the second quarter and opened new stakes in Advanced Micro Devices and Alphabet. A Motley Fool analysis argues Micron still has room to run while Intel looks fully priced, and calls Alphabet the most complete AI play in the portfolio shift.
Duquesne Capital exited Micron and Intel in the second quarter, then put fresh capital into Advanced Micro Devices and Alphabet.
Micron's case for staying, Intel's case for selling
Micron has ridden a memory supercycle in which supply-and-demand imbalances have pushed memory prices sharply higher, lifting its revenue and gross margins. AI data centers need large quantities of high-bandwidth memory packaged with their GPUs, and that demand is expected to keep the memory market constrained for years. Despite the run-up, Motley Fool analyst Geoffrey Seiler notes Micron still trades at a forward price-to-earnings ratio of just over 6.5.
Intel tells a weaker story. Demand for data center CPUs is rising as hyperscalers and neoclouds prepare for more AI agent use, but Seiler argues this looks more like Intel stumbling into good fortune than turning its business around, while its foundry unit keeps losing money.
AMD picks up the server-CPU and inference bet
AMD has been taking server CPU share from Intel, and its high-core chips target agentic AI workloads specifically. The company projects that market will grow to $220 billion and believes it can win more than 50% of it.
The chipmaker is also chasing AI inference, a market expected to outgrow AI training. Its chiplet design lets it pack more memory alongside its processors, and it has partnered with Cerebras on a disaggregated inference system while acquiring Taalas and MEXT to build out the same push.
Alphabet becomes a top-10 Duquesne holding
Alphabet became one of Druckenmiller's top 10 stock holdings in the second quarter. Its cloud computing segment is growing quickly, and its custom Tensor Processing Units give it a cost edge on inference while also training its own models more cheaply. Ownership of Chrome and Android, plus a search revenue-sharing deal with Apple that makes Google the default search engine, gives Alphabet a distribution advantage its global ad network then helps monetize.
Source: The Motley Fool
Trading involves risk.
Risk Disclaimer
