Billionaire investor Stanley Druckenmiller, head of Duquesne Family Office, has significantly reduced his exposure to AI powerhouses Palantir and Nvidia, shifting his focus to turnaround stocks. According to recent Form 13F filings with the Securities and Exchange Commission (SEC), Druckenmiller has instead placed substantial bets on Philip Morris International (NYSE: PM), Warner Bros. Discovery (NASDAQ: WBD), and Teva Pharmaceutical Industries (NYSE: TEVA).
AI Sell-Off: Exiting Nvidia and Palantir
Between March 31, 2024, and March 24, 2025, Druckenmiller dumped 95% of his Palantir stake. His fund also exited its entire Nvidia position, shedding all 9,500,750 split-adjusted shares it held as of June 30, 2023, following Nvidia’s 10-for-1 stock split in June 2024.
The decision to sell these AI giants comes after a period of extraordinary gains.
- Palantir surged nearly 2,000% from its 2023 lows, while
- Nvidia’s market cap soared by over $3 trillion during the AI boom.
Valuation concerns also factored into the sell-off.
- In June 2024, Nvidia’s price-to-sales (P/S) ratio hit a peak of 42.39, a level typically seen during market bubbles.
- Palantir, meanwhile, reached an eye-watering P/S ratio of around 100, making it a high-risk proposition.
Turnaround Bets: Shifting to Value Plays
With AI valuations appearing frothy, Druckenmiller has rotated into three turnaround stocks, targeting value and recovery potential.
1. Philip Morris International (NYSE: PM)
Druckenmiller acquired 1,352,255 shares of Philip Morris International last year.
- The company’s geographic diversity, operating in over 180 countries, helps offset declining cigarette shipments in developed markets with growth in emerging regions.
- Its strategic focus on reduced-risk products (RRPs), including its IQOS heated tobacco system, is driving long-term growth prospects.
2. Warner Bros. Discovery (NASDAQ: WBD)
The fund also purchased 4,657,650 shares of Warner Bros. Discovery in 2024.
- The company’s global direct-to-consumer subscriber base grew by over 19 million last year, reaching 116.9 million.
- Average revenue per user (ARPU) was in the mid-to-high $7 range, indicating a strong monetization trajectory.
3. Teva Pharmaceutical Industries (NYSE: TEVA)
Druckenmiller made a massive bet on Teva, acquiring 8,997,400 shares—making it his fourth-largest holding.
- In July 2022, Teva settled opioid litigation with 48 states for $4.25 billion, payable over 13 years, with up to $1.2 billion potentially covered through Narcan deliveries.
- The company’s focus on generic drugs and biosimilars, coupled with the resolution of legal overhang, makes it a compelling turnaround play.
Druckenmiller’s Strategy: Chasing Value Over Hype
With $3.7 billion in assets under management (AUM), Druckenmiller’s fund has an average holding period of fewer than seven months across 78 securities, highlighting its short-term trading approach.
By exiting AI high-flyers and pivoting into value-driven recovery stocks, Druckenmiller appears to be betting on near-term price dislocations and undervalued opportunities, rather than riding momentum-driven tech trends.
