TLDR
- Stanley Druckenmiller sold his entire 770,000-share stake in Palantir Technologies between June 2024 and March 2025
- He purchased 86,000 shares of Broadcom worth $24 million during Q2 2025, returning to a stock he previously owned
- Palantir’s extremely high price-to-sales ratio of 115 may have prompted the exit beyond simple profit-taking
- Broadcom benefits from AI data center demand through networking hardware and custom chips
- Insiders at Palantir have sold over $7.6 billion in stock with only one insider purchase since going public
Stanley Druckenmiller, the billionaire investor behind Duquesne Family Office, made major moves in AI stocks during 2025. He completely sold his Palantir Technologies position while buying back into Broadcom.
The hedge fund manager dumped all 770,000 shares of Palantir between June 2024 and March 2025. His fund had held the AI data mining company for less than a year before the complete exit.
Palantir stock soared during Druckenmiller’s ownership period. The company provides AI-powered software through its Gotham platform for government contracts and Foundry platform for business clients.
Valuation Concerns Drive Palantir Exit
Profit-taking likely explains part of Druckenmiller’s Palantir sale. His fund typically holds stocks for less than seven months on average before taking gains.
But valuation concerns may have pushed the decision further. Palantir trades at 115 times sales, far above the 30-40 times sales ratio that historically marks peak valuations for emerging technology companies.
Insider selling patterns also raise red flags. Since going public in September 2020, Palantir insiders have sold over $7.6 billion in stock while making just one purchase.
The company continues beating earnings estimates and growing revenue. However, no operating metrics justify such extreme valuation multiples according to historical precedent.
Broadcom Returns to Portfolio
During the same period, Druckenmiller bought 86,000 Broadcom shares worth $24 million. This marks his return to the AI networking company after previously owning and selling the stock.
Broadcom provides critical hardware for AI data centers. Its solutions connect thousands of graphics processing units while reducing latency for AI applications requiring split-second decisions.
The company’s custom AI chips present major growth opportunities. CEO Hock Tan projects $60-90 billion in revenue from three large hyperscaler customers by 2027.
Diversified Revenue Streams
Broadcom operates beyond AI networking. The company generates revenue from smartphone wireless chips, enterprise cybersecurity, industrial robotics, and automotive solutions.
This diversification provides stability if AI investment cycles change. Multiple revenue streams reduce dependence on any single technology trend.
Druckenmiller likely purchased Broadcom shares during April’s market decline. The timing would have allowed him to buy at attractive valuations following trade policy concerns.
The stock traded at less than 20 times forward earnings during that period. This represents solid value for a company projected to grow sales over 20% annually.
Broadcom’s current market capitalization exceeds $1.4 trillion. The company maintains strong gross margins above 60% across its product lines.
Druckenmiller’s moves reflect a shift from high-valuation AI plays to more reasonably priced companies with solid fundamentals and diverse revenue streams in the AI ecosystem.
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