Druckenmiller exits Broadcom, Intel, Micron; AMD last chip bet

Druckenmiller's track record of taking a top-down approach — buying groups of stocks set to benefit from trends like artificial intelligence — once meant holding Nvidia, Broadcom, Micron, and Intel at various points over the last few years. That has narrowed sharply. He sold out of Nvidia in 2024, then exited Broadcom, Intel, and Micron last quarter, while opening the AMD position during that same period. Only AMD remains as a major AI chipmaker in the portfolio.

The AMD thesis rests on a distinction the article draws between GPUs and CPUs. GPUs, with their parallel processing power, drove earlier phases of the AI infrastructure build-out, but data center CPU demand is described as growing rapidly due to the expected rise in agentic AI, which requires far more CPUs than AI training does. AMD designs both, while its biggest competitors Nvidia and Intel specialize in one or the other, though Nvidia has made significant progress in CPU design.

AMD's Helios rack-scale solution, due later this year, treats the entire server rack as a single unit and concentrates sales with one provider. Management said customer pull is "tracking ahead of our initial forecast" and has announced deals with OpenAI, Meta Platforms, and Anthropic. Whether Druckenmiller is right that the market underestimates AMD likely hinges on those first systems going into use — and on whether the premium valuation of 63 times forward earnings is justified by the revenue acceleration management and analysts expect.