Druckenmiller exits 5 chip stocks, doubles down on Amazon and Alphabet

The filing reveals a deliberate pivot from semiconductor suppliers to the companies that buy chips for AI infrastructure. Druckenmiller's exits of Micron, Intel, Broadcom, Lattice Semiconductor, and Coherent—all component or equipment makers—contrast sharply with his simultaneous buildup in Amazon and Alphabet, the world's two largest technology buyers. The pattern becomes clearer when examining the companies he retained: Taiwan Semiconductor Manufacturing and STMicroelectronics, both foundational to the AI supply chain, received additional investment, while newer positions in Advanced Micro Devices and Lam Research also sit closer to the center of the build-out. The common thread is proximity to the AI infrastructure race. Amazon's cloud computing revenue accelerated to 37% year-over-year growth in the second quarter (its fastest rate in 18 quarters), and the company lifted its annual capital spending to about $220 billion. Alphabet similarly doubled its quarterly capital expenditure to $44.9 billion and raised its full-year plan to between $195 billion and $205 billion. Both companies increasingly design critical chips themselves—Amazon's in-house chip business has surpassed a $25 billion annual revenue run rate, while Alphabet's cloud unit deploys systems built on its own TPU chips. This vertical integration may signal that Druckenmiller sees a structural advantage: companies that place orders write checks for every product cycle and can choose suppliers, whereas component makers must compete for placement in each generation.