Billionaire Stanley Druckenmiller's Duquesne Family Office sold semiconductor stocks Micron and Intel during the second quarter after sharp gains, while simultaneously multiplying its Amazon position by more than 11 times.
The shift reflects profit-taking from chip stocks that had rallied sharply, paired with conviction in Amazon's cloud infrastructure business (AWS), which is pacing $169 billion in annual run rate revenue and integrating generative AI solutions to accelerate sales.
What happened
Stanley Druckenmiller's Duquesne Family Office sold 23,400 shares of Micron Technology and 411,400 shares of Intel in the second quarter, while purchasing 495,800 shares of Amazon—increasing the fund's Amazon stake by 1,083% from the end of March.
Why it matters
Druckenmiller cited profit-taking from the semiconductor stocks after sharp rallies (Micron more than tripled between April and June; Intel jumped from the mid-$40 range to as high as $141). He remains bullish on AI long-term despite believing it is "a little overhyped now," and Amazon's AWS division—pacing $169 billion in annual run rate revenue with accelerating sales—now anchors his portfolio as a top-10 position.
What to watch
Wall Street estimates Amazon's cash flow per share will more than double from $12.89 in 2025 to north of $30 in 2028. AWS revenue over the last 12 months ($148 billion) exceeded the total revenue of 474 companies in the S&P 500.
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Druckenmiller's strategic shift in the second quarter reflects a nuanced view of artificial intelligence markets. While he remains convinced of AI's long-term potential—stating in a May 2024 CNBC interview that "AI might be a little overhyped now, but underhyped long term"—he saw reason to lock in gains on semiconductor stocks that had become overextended. Micron and Intel, both well-positioned to benefit from AI infrastructure adoption, had nonetheless experienced outsized rallies in just three months, suggesting valuations had run ahead of fundamentals.
His pivot to Amazon, by contrast, reflects confidence in a company with tangible, accelerating AI revenue streams. AWS's $169 billion annual run rate, combined with proven integration of generative AI into its platform, offers Druckenmiller exposure to AI adoption without the execution risk of pure-play chip suppliers. The move also aligns with a broader pattern among billionaire investors, who consistently favor Amazon as a top holding. Wall Street's projection that Amazon's cash flow per share will more than double from $12.89 in 2025 to north of $30 by 2028 suggests the market sees runway for both cloud growth and AI monetization—a thesis Druckenmiller appears to have embraced.
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