Actions of Nvidia (NASDAQ:NVDA) fell briefly today, falling as much as 10.7% early in the trading session, but clawed back those losses throughout the morning to end the session down just 1.7%.
The catalyst for the movement was comments from famous billionaire investor Stanley Druckenmiller.
What did Druckenmiller say about Nvidia?
In an interview on CNBC this morning, Druckenmiller, who had an impeccable track record running the Duquesne Capital Management fund for nearly 30 years, said he reduced his stake in Nvidia at the end of March.
Druckenmiller argued it was time to take profits on the stock, saying, “A lot of what we recognized is now recognized by the market.”
The former hedge fund titan was early to recognize Nvidia’s potential in the generative AI boom as his Duquesne Family Office moved aggressively into Nvidia shares in Q4 2022 at launch by ChatGPT.
Druckenmiller began selling his stake in Nvidia in the fourth quarter, although that seems premature in retrospect as AI stock surged again in the first quarter of this year.
We’ll know how much of his stake in Nvidia he reduced when the 13F reports are released next week.
Why Nvidia stock has rebounded
There was no particular catalyst for the Nvidia stock rally. Stocks appeared to move higher as some investors saw the sharp decline as a buying opportunity.
Druckenmiller wasn’t particularly pessimistic on Nvidia and expressed long-term optimism for AI, but he seemed content to take profits as the stock has surged since he started buying.
Although Nvidia is unlikely to generate more multiple returns, with the company now worth more than $2 trillion, the stock could continue to outperform. We’ll know more when Nvidia reports its first quarter results later this month.
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Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool Ranks and Recommends Nvidia. The Mad Motley has a disclosure policy.
Why Nvidia stock briefly dipped then recovered today was originally published by The Motley Fool
