Legendary investor Stanley Druckenmiller says that “animal spirits” are back in the U.S. market and is urging investors to buy stocks of artificial intelligence (AI) companies.
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Druckenmiller said in an interview with CNBC that he’s bullish on companies where adopting AI is going to lower their costs and drive productivity gains. While he didn’t name specific stocks to buy, Druckenmiller last year sold his positions in leading AI stocks Nvidia (NVDA) and Microsoft (MSFT), a decision he has said he regrets.
Druckenmiller added that Wall Street is gearing up for pro-business policies under the incoming administration of U.S. President Donald Trump. “We do a lot of talking to CEOs and companies on the ground. And I’d say CEOs are somewhere between relieved and giddy. So we’re a believer in animal spirits,” he said.
Some of Druckenmiller’s current holdings, according to his public disclosures with the U.S. Securities and Exchange Commission (SEC), include Coherent Corp. (COHR), Natera (NTRA), and Coupang (CPNG).
Wall Street Legend
Druckenmiller is a billionaire investor who is viewed as a Wall Street legend. He managed George Soros’ Quantum Fund for years and famously helped Soros make a $10 billion bet against the British pound back in 1992. He later oversaw $12 billion as president of Duquesne Capital Management before closing that firm in 2010. Druckenmiller now runs his own family investment office.
In the CNBC interview, Druckenmiller said that investors should focus on individual stocks in the current market, and added that he thinks risks such as trade wars and tariffs are overblown. “I think the risks are overblown relative to the rewards, the rewards on high,” he said.
Druckenmiller was speaking as Trump was preparing to be sworn in for a second term as U.S. president.
Is NVDA Stock a Buy?
Nvidia is a leading AI stock and one that Druckenmiller says he regrets selling too early. NVDA stock currently has a consensus Strong Buy rating among 39 Wall Street analysts. That rating is based on 36 Buy and three Hold recommendations assigned in the past three months. The average NVDA price target of $176.86 implies 28.43% upside from current levels.
