Billionaire investor Stanley Druckenmiller says artificial intelligence could be a lucrative opportunity for investors. Druckenmiller said at the Sohn Investment Conference online on Tuesday, “I really think AI is very real and could have as much impact as the internet literally moves forward. “It could be a great opportunity for a hard landing like 2001 or 2002. A great opportunity for the tech bubble to burst… AI could be out there.” Early 2000s dotcom After the bubble burst, tech stocks quickly dominated and continued to lead a decade-long bull market. Recently, the enthusiasm around AI has given the whole market a big boost. According to Trivariate Research, his $700 billion of the $2.5 trillion market capitalization of growth stocks this year comes from betting on the potential of AI. The legendary investor, who has never had a year of downturns in the market, said so far he’s been exposed to the AI space through his two stocks in Nvidia and Microsoft. He said Nvidia could thrive even in a deep recession. NVDA YTD Mountain Nvidia “My company was only able to get into AI by owning Nvidia and Microsoft,” Druckenmiller said. “It’s not even clear to me if Nvidia would go bankrupt if we had a really bad recession.” I jumped up. Investors have become bullish on Nvidia’s AI vision, seeing the inventor of graphics processing units as one of the chipmakers best positioned to withstand the economic slowdown. It has already taken a toll on personal computer and wider semiconductor sales.Druckenmiller once managed George Soros’ Quantum Fund and rose to fame for his $10 billion bet against the British pound in 1992. I made a profit. depressed for a while. He believes the past decade of extraordinary quantitative easing and zero interest rates has created an asset bubble that is now in the final stages of bursting. “I am sitting here facing the biggest asset and probably the broadest asset bubble,” Druckenmiller said. . “It lasted 10 or 11 years and that was the grand finale. Governments spent $5 trillion on Covid. The Fed funded 60% of that. And now interest rates are going up significantly The Fed has raised interest rates 10 times since last year, bringing the fed funds rate to its 5% to 5.25% target range, the highest level since August 2007. There have only been a few soft landings since 1950. All of them were preceded by what I call aggressive rather than passive Fed policy. He added that he wouldn’t be surprised if it had already started.
