Billionaire Stanley Druckenmiller Is Selling Nvidia and Palantir and Piling Into One of Wall Street's Hottest Drug Stocks Ahead of 2025

AI Stocks and Market Trends - The AI revolution is projected to add $15.7 trillion to the global economy by the end of the decade, driving the surge in AI stocks since 2023 [2] - AI stocks like Nvidia and Palantir have seen significant gains, with Nvidia up 172% and Palantir up 369% year-to-date as of Dec 20 [5] - Despite the hype, investors often overestimate the speed of adoption and utility of new technologies like AI, signaling a potential bubble [6] - Nvidia and Palantir face valuation concerns, with Nvidia's P/S ratio surpassing 40 and Palantir trading at 73 times TTM P/S, levels historically associated with market peaks [11] Duquesne Family Office's Investment Strategy - Duquesne Family Office, managing nearly $3 billion in assets, has sold all its shares of Nvidia and reduced its stake in Palantir by 95% [3][4][9] - The fund's decision to sell AI stocks may be driven by profit-taking, given the outsized gains in Nvidia and Palantir [5] - Duquesne has shifted focus to Teva Pharmaceutical, adding 1,427,950 shares during the September-ended quarter, as Teva's shares have risen 112% year-to-date [13] Teva Pharmaceutical's Turnaround - Teva has resolved opioid litigation with a $4.25 billion settlement spread over 13 years, including supplying $1.2 billion of Narcan to states [15] - The company has shifted focus to brand-name therapies, with drugs like Austedo and Ajovy growing sales by over 20% in the September-ended quarter [16] - Teva's experimental drug duvakitug has shown promise in phase 2b trials, potentially generating over $1 billion in peak annual sales if approved [17] - The company has improved financial flexibility, reducing net debt from over $35 billion in 2016 to less than $15.7 billion, with shares trading at less than 8 times forecast EPS for 2025 [18]