Billionaire Stanley Druckenmiller Sold 95% of Duquesne's Stake in Palantir and Is Piling Into This Trillion-Dollar Artificial Intelligence (AI) Stock Instead

Core Viewpoint - Duquesne Family Office's Stanley Druckenmiller has significantly reduced his holdings in Palantir Technologies while increasing his investment in Broadcom, indicating a strategic shift within the AI sector amidst concerns over valuations and market sustainability [5][12]. Group 1: Palantir Technologies - Druckenmiller's Duquesne sold nearly all of its Palantir shares, reducing its stake from approximately 770,000 shares to just 41,710 shares, a reduction of about 95% [6][7]. - The selling activity may be attributed to profit-taking, as Palantir's stock has surged by 335% year-to-date [7]. - Palantir's recent stock rally is driven by its shift to recurring profitability and strong demand for its AI-driven platforms, Gotham and Foundry [8]. - Concerns exist regarding the long-term customer pool for Gotham, which is limited to the U.S. and its closest allies [10]. - Palantir's valuation is seen as unsustainable, trading at approximately 69 times its trailing-12-month sales, compared to historical peaks of around 40 times during previous market bubbles [11]. Group 2: Broadcom - Duquesne added 239,980 shares of Broadcom, which has recently become a trillion-dollar stock, indicating a strong belief in its growth potential [13]. - Broadcom's AI networking solutions are critical for connecting GPUs, which are essential for AI-driven applications [14]. - In fiscal 2024, Broadcom reported $12.2 billion in AI sales, reflecting a 220% year-on-year growth, with expectations of significant spending from its top customers on AI-specific chips [15]. - Broadcom is a diversified tech company, with over $39 billion of its fiscal 2024 sales coming from areas beyond AI networking, including wireless chips and cybersecurity solutions [16]. - The company has a favorable capital-return program, with its dividend payout increasing by 8,329% since 2010 [17]. - Concerns for Broadcom include its current valuation, trading at 22 times trailing-12-month sales, which is a 166% premium to its five-year average [18].