Druckenmiller sells Alphabet stake for five AI hardware bets

Stanley Druckenmiller’s Duquesne Family Office sold its entire 385,000-share position in Alphabet and used the proceeds to buy stakes in five companies that supply hardware for artificial intelligence, according to the fund’s latest 13F filing covering holdings as of March 31.

The filing shows Duquesne disposed of all 385,000 Class A Alphabet shares, a position valued at nearly $153 million. The fund had increased that Alphabet holding by 277% in the prior quarter and held the shares for just over two quarters while the stock rose more than 50%. Alphabet shares trade at roughly 28 times forward earnings, compared with about 17 times a year earlier. Druckenmiller has questioned AI valuations, calling AI “a little overhyped now” and adding that “AI could rhyme with the internet.” The filing records new and larger positions in companies that make chips, memory and storage used in AI systems.

Duquesne opened a new position in SanDisk with 38,155 shares worth about $24.2 million. SanDisk’s parent reported third-quarter revenue of $6.0 billion versus $4.7 billion estimated, a 251% year-over-year increase, with data center sales of $1.5 billion, up 645% year-over-year. SanDisk CEO David Goeckeler described the results as “a fundamental inflection point,” citing a shift toward inference workloads that require high-speed NAND flash and multi-year supply agreements with large cloud customers.

The fund increased its stake in Micron, which reported second-quarter revenue of $23.9 billion, a 196% year-over-year gain. Micron reported earnings per share of $12.07 versus a $9.33 consensus and beat revenue estimates by nearly $3.7 billion. The company guided current-quarter revenue to about $33.5 billion, implying year-over-year growth of more than 200%. CEO Sanjay Mehrotra described Micron as an AI enabler and highlighted that it is the only U.S.-based memory manufacturer in a constrained global supply market.

Duquesne also bought 50,700 shares of Seagate, a stake valued at about $19.9 million. Seagate reported third-quarter revenue of $3.1 billion, up 44% year-over-year, with adjusted earnings per share of $4.10. The company reported nearline capacity is nearly fully allocated through calendar 2027 and that build-to-order contracts are being finalized through the end of the fiscal year. Seagate said the top three cloud providers’ remaining purchase obligations nearly doubled to about $1.1 trillion.

The largest new position was in Broadcom, where Duquesne acquired roughly 196,000 shares for about $60.7 million. Broadcom reported first-quarter AI revenue of $8.4 billion, up 106% year-over-year and above company forecasts. Broadcom guided AI semiconductor revenue to $10.7 billion for the second quarter and expects total second-quarter revenue of about $22 billion, up 47% year-over-year. CEO Hock Tan has stated that AI revenue growth is accelerating and the company is targeting $100 billion in cumulative AI-related sales by 2027.

Duquesne opened a position in Arm Holdings with 106,700 shares worth roughly $16.1 million. Arm reported record full-year revenue of $4.9 billion, with royalty revenue up 21% and licensing revenue up 25%, marking its third consecutive year of more than 20% revenue growth since returning to public markets. Arm said data center royalties more than doubled year-over-year as cloud providers adopt Arm-based custom chips.

The 13F filing documents a reduction in Duquesne’s Alphabet exposure and new or larger positions in suppliers of chips, memory and storage. The filing cites company results that show rapid revenue growth and forward commitments from large cloud customers across several of the hardware names.