The Motley Foolยท2025-07-18 07:06Core Viewpoint - Duquesne Family Office's billionaire chief Stanley Druckenmiller has sold his entire stake in Palantir Technologies, a prominent AI stock, and shifted investments towards two undervalued stocks, Teva Pharmaceutical Industries and Taiwan Semiconductor Manufacturing Company, which have shown significant growth potential in recent years [1][7][19]. Group 1: Palantir Technologies - Druckenmiller completely sold 41,710 shares of Palantir in the March-ended quarter, totaling nearly 770,000 shares sold since March 31, 2024 [8][9]. - Palantir's stock has increased over 2,200% since the beginning of 2023, prompting Druckenmiller to lock in profits [9]. - Concerns about Palantir's valuation are significant, with a price-to-sales (P/S) ratio of almost 119, which is historically unsustainable [12]. Group 2: Teva Pharmaceutical Industries - Teva has become a top holding for Druckenmiller, with significant purchases over the last three quarters, totaling 14,879,750 shares [16]. - The company has resolved litigation issues, settling opioid litigation for $4.25 billion, which alleviates financial burdens [15]. - Teva's focus has shifted towards novel drug development, with potential high-margin products like the tardive dyskinesia drug Austedo expected to exceed $2 billion in annual sales [17]. - Teva's net debt has decreased from over $35 billion to less than $15 billion, improving its balance sheet significantly [18]. Group 3: Taiwan Semiconductor Manufacturing Company - Druckenmiller has increased his holdings in TSMC, recognizing its critical role in the AI revolution and its sustained double-digit growth [19][20]. - TSMC is not solely an AI play; it manufactures processors for major companies like Apple and components for next-generation vehicles, providing diverse revenue streams [20]. - The company's forward P/E ratio of less than 22 is considered attractive, especially with an expected sales growth rate of 26% in 2025 [21].