TLDR
- Billionaire Stanley Druckenmiller completely sold his Palantir stake of 770,000 shares between June 2024 and March 2025
- He purchased 86,000 Broadcom shares worth $24 million in Q2 2025, marking his return to the AI networking stock
- Palantir’s price-to-sales ratio of 115 far exceeds sustainable levels for tech companies
- Broadcom offers AI infrastructure hardware with diversified revenue streams beyond artificial intelligence
- Palantir insiders have sold $7.6 billion in stock with only one purchase since going public in 2020
Hedge fund billionaire Stanley Druckenmiller made a major portfolio change in 2025, completely exiting Palantir Technologies while returning to AI hardware company Broadcom. The moves signal potential concerns about AI stock valuations.
Druckenmiller’s Duquesne Family Office sold all 770,000 Palantir shares between June 2024 and March 2025. The fund had held the AI data mining company for less than a year before the complete exit.
During the same period, Druckenmiller purchased 86,000 Broadcom shares worth approximately $24 million. This marks his return to the trillion-dollar AI networking company after previously owning the stock.
Palantir Valuation Concerns Mount
While profit-taking explains some selling activity, Palantir’s extreme valuation likely drove the complete exit. The company trades at 115 times sales, well above the 30-40 times sales ratio that historically marks peak valuations for technology stocks.
Palantir provides AI-powered software through its Gotham platform for government clients and Foundry platform for businesses. Despite strong revenue growth and earnings beats, the valuation appears unsustainable.
Insider selling patterns raise additional red flags. Since going public in September 2020, Palantir executives and directors have sold over $7.6 billion in stock while making just one insider purchase.
Druckenmiller typically holds positions for less than seven months, making quick exits after substantial gains. However, the complete Palantir liquidation suggests deeper concerns beyond simple profit-taking.
Broadcom Offers AI Infrastructure Play
Broadcom provides critical hardware for AI data centers, connecting thousands of graphics processing units while reducing latency for AI applications. The company’s networking solutions enable maximum compute capacity for enterprise AI systems.
Custom AI chips represent a major growth opportunity for Broadcom. CEO Hock Tan projects $60-90 billion in revenue from three large hyperscaler customers by 2027 through application-specific integrated circuits.
Diversified Revenue Streams Provide Stability
Unlike pure-play AI companies, Broadcom generates revenue across multiple segments. The company produces wireless chips for smartphones, enterprise cybersecurity solutions, and components for industrial robotics and automotive applications.
This diversification provides downside protection if AI investment cycles change. Multiple revenue streams reduce dependence on artificial intelligence trends while maintaining exposure to the sector’s growth.
Druckenmiller likely purchased Broadcom shares during April’s market decline, when trade policy concerns created buying opportunities. The stock traded at less than 20 times forward earnings, representing solid value for a company growing sales over 20% annually.
The billionaire’s moves reflect a preference for reasonably valued AI infrastructure companies over high-multiple software plays. Broadcom’s $1.4 trillion market cap and 60%+ gross margins demonstrate the financial strength lacking in many speculative AI investments.
