Billionaire Stanley Druckenmiller Jettisoned His Fund's Entire Stake in Palantir and Loaded ...

Billionaire investor Stanley Druckenmiller's Duquesne Family Office completely sold its 770,000-share position in Palantir Technologies while simultaneously building a massive stake in Taiwan Semiconductor Manufacturing (TSMC) over four consecutive quarters.

Druckenmiller's exit from Palantir likely stems from valuation concerns, as the AI data-mining company trades at an unsustainable price-to-sales ratio of 121, far exceeding the 30-40 range historically seen in companies during transformative tech periods. Meanwhile, he has accumulated 765,085 shares of TSMC, making it his fund's fifth-largest holding and top AI investment. TSMC benefits from critical AI chip manufacturing demand while maintaining diversification across smartphones, automobiles, and IoT devices.

• Palantir's extreme valuation raises sustainability concerns despite strong growth
• TSMC offers essential AI chip fabrication with reasonable forward P/E ratio of 23
• Diversified semiconductor demand provides downside protection during potential AI bubble
• Strategic shift reflects focus on infrastructure over premium-valued AI software