Billionaire Stanley Druckenmiller Sold Nvidia and Palantir and Piled Into One of Wall Street's Hottest Drug Stocks Ahead of 2026 | The Motley Fool

For the better part of the last three years, no trend has garnered more attention on Wall Street than artificial intelligence (AI) . Empowering software and systems with the tools to make split-second decisions, all without the need for human oversight, is a technological advancement that can benefit most industries around the globe -- and the stock market's savviest money managers know it. No later than 45 calendar days following the end of a quarter, institutional investors with at least $100 million in assets under management are required to file Form 13F with the Securities and Exchange Commission. A 13F details which stocks Wall Street's brightest money managers purchased and sold in the latest quarter. Image source: Getty Images. As you can imagine, the stock market's AI darlings, graphics processing unit (GPU) titan Nvidia ( NVDA +3.00%) and software-as-a-service (SaaS) giant Palantir Technologies ( PLTR +0.05%), have been top-tier holdings for several fund managers. But this optimism isn't universal. Duquesne Family Office's billionaire boss, Stanley Druckenmiller, exited his fund's positions in Nvidia and Palantir well in advance of 2026 . Instead of focusing on AI, Druckenmiller has been busy piling into one of Wall Street's hottest drug stocks for five consecutive quarters. Billionaire Stanley Druckenmiller showed Nvidia and Palantir to the door Since the beginning of 2023, Nvidia and Palantir have made their patient shareholders considerably richer. Nvidia became the first public company to reach the $5 trillion market cap plateau earlier this year, while shares of Palantir have climbed by more than 2,900%! NASDAQ: NVDA Key Data Points These near-parabolic ascents reflect the seemingly sustainable moats that both companies hold dear. Nvidia's Hopper, Blackwell, and Blackwell Ultra GPUs have been superior, on a compute basis, to external competition. With AI infrastructure demand outpacing supply, and CEO Jensen Huang intent on bringing a new GPU to market annually , Nvidia hasn't had any trouble charging a premium price for its hardware. Meanwhile, Palantir's AI-driven Gotham and Foundry SaaS platforms lack one-for-one replacements at scale . Gotham assists the U.S. government and its allies in planning and overseeing military missions, as well as in collecting and analyzing data. The multiyear contracts Palantir has signed with the U.S. government ensure predictable double-digit sales growth and abundant operating cash flow. Despite these sustainable moats, billionaire Stanley Druckenmiller parted ways with both stocks. He jettisoned his fund's remaining stake of 214,060 shares of Nvidia during the September-ended quarter of 2024. As for Palantir, 769,965 shares were shown to the door in a nine-month stretch between July 1, 2024, and March 31, 2025. Druckenmiller dumping the faces of the AI revolution may represent nothing more than simple profit-taking. According to 13F aggregator WhaleWisdom.com, the average hold time for every security in Duquesne Family Office's fund, as of Sept. 30, was less than seven months. This demonstrates the willingness of its investment chief to take profits when the opportunity presents itself. NASDAQ: PLTR Key Data Points The concern is that there may be more to this...

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