In this interview with Bloomberg, Stanley Druckenmiller explained how AI has dominated his long portfolio for five to six months. Here’s an excerpt from the interview:
Druckenmiller: All of AI is not going to make it through whether we have a recession or not because they haven’t separated the wheat from the chaff yet.
But I do believe, unlike crypto, I think AI is real.
It could be as transformative as the Internet. It’s a huge thing, and I think I’ve argued publicly that if staples can go up in price in a recession, why can’t a company like Nvidia.
If they go up, if their orders and earnings go up 70 percent in a hard landing, which is what I think would probably happen. It’s not clear that Nvidia goes down despite the lofty valuation level. History has proved if you have very good earnings in a recession, and they’re sustainable, if they’re not the market somehow figures it out, those stocks will do just fine.
So we have some longs, we have some shorts, and the AI’s have sort of dominated the long portfolio for five or six months.
You can watch the entire discussion here:
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