Billionaire Stanley Druckenmiller Has Sold Micron, Broadcom, and Intel. Here's the Biggest AI Chip Designer Left in His Portfolio.

Stanley Druckenmiller took a sizable position in Nvidia (NASDAQ: NVDA) shortly after ChatGPT's release. The famous investment manager typically takes a top-down approach to investment themes, buying groups of stocks poised to benefit from trends such as artificial intelligence . That means he has owned stakes in Nvidia, Broadcom (NASDAQ: AVGO), Micron Technology (NASDAQ: MU), and Intel (NASDAQ: INTC), among other big semiconductor companies, at various points during the last few years.

Druckenmiller sold out of his Nvidia position in 2024. Last quarter, he exited from his positions in Broadcom, Intel, and Micron. Only one big AI chipmaker remains in his portfolio, although he has kept stakes in a few smaller ancillary AI-related semiconductor companies. In fact, Druckenmiller opened that position during the same period that he sold his other major semiconductor stocks.

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Here's the chipmaker that Druckenmiller's betting on.

While Druckenmiller was selling some of the biggest names in the AI chip space, he was buying AMD (NASDAQ: AMD). The veteran chipmaker makes graphics processing units (GPUs), but its strength has long been in central processing units (CPUs). And while GPUs, with their massive parallel processing power, were the chips in highest demand during earlier phases of the AI infrastructure build-out, the market for data center CPUs is growing rapidly due to the expected rise in the use of agentic AI, a technology that requires far more CPUs to support than AI training does.

That could be important for AMD's future as it introduces its rack-scale solution, Helios, to the market later this year. A rack-scale solution treats the entire server rack, including GPUs, CPUs, networking chips, and other equipment, as a single unit, providing a highly efficient system and concentrating sales with a single provider.

During the company's second-quarter earnings call, management noted that "customer pull for Helios is very strong and tracking ahead of our initial forecast." It has already announced deals with OpenAI, Meta Platforms , and Anthropic. AMD also plans to release new rack-scale systems every year.

AMD's position as a leading designer for both GPUs and CPUs is key. Its biggest competitors, Nvidia and Intel, specialize in one or the other. That said, Nvidia has made significant progress in CPU design.