Although earnings season is typically the highlight of each quarter for investors, the filing of Form 13Fs with regulators can be equally valuable. A 13F details which stocks Wall Street's smartest money managers, such as Duquesne Family Office's billionaire boss, Stanley Druckenmiller, bought and sold in the latest quarter. Druckenmiller is an active money manager with an attraction to innovation-focused companies.
Duquesne's latest 13F, detailing second-quarter trading activity, shows that its billionaire chief dumped shares of Micron Technology (NASDAQ: MU) and Intel (NASDAQ: INTC), while absolutely piling into the favorite artificial intelligence (AI) stock of billionaire investors: Amazon (NASDAQ: AMZN). This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.
For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Druckenmiller was a busy bee in the June-ended quarter, with 23 stocks getting the heave-ho and 10 others reduced. But what really stands out is the 23,400 shares of Micron and 411,400 shares of Intel that were sold.
Profit-taking is the most logical reason that these two high-flying semiconductor stocks were shown the door. Following a short-lived pullback in the broader market in March, shares of Micron more than tripled between the start of April and the end of June. It's a similar story for chipmaker Intel, whose stock catapulted from the mid-$40 range to as high as $141.
Both companies find themselves well-positioned to thrive amid the evolution of AI. Intel's central processing units are essential in AI-accelerated data centers, while demand for Micron's high-bandwidth memory is off the charts. Nevertheless, history hasn't been too kind to game-changing technologies.
Every major technological innovation since (and including) the advent of the internet has navigated an early stage bubble-bursting event. These bubbles form because investors constantly overestimate the pace of optimization for a new technology. Although AI infrastructure adoption isn't an issue, it'll likely take several years for businesses to optimize their AI solutions.
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