Billionaire investor Stanley Druckenmiller revealed Tuesday that he has slashed his big bet in chipmaker Nvidia earlier this year, saying the swift artificial intelligence boom could be overdone in the short run.

“We did cut that and a lot of other positions in late March. I just need a break. We’ve had a hell of a run. A lot of what we recognized has become recognized by the marketplace now.” Druckenmiller said on CNBC’s “Squawk Box.”

The notable investor, who now runs Duquesne Family Office, said he was introduced to Nvidia by his young partner in the fall of 2022, who believed that the excitement about blockchain was going to be far outweighed by AI.

“I didn’t even know how to spell it,” Druckenmiller said. “I bought it. Then a month later ChatGPT happened. Even an old guy like me could figure out okay, what that meant, so I increased the position substantially.”

Nvidia has been the primary beneficiary of the recent technology industry obsession with large artificial intelligence models, which are developed on the company’s pricey graphics processors for servers. The stock was one of the best performers last year, rallying a whopping 238%. Shares are up another 66% in 2024.

While Druckenmiller has cut his Nvidia position, he said he remains bullish in the long term on the power of AI.

“So AI might be a little overhyped now, but underhyped long term,” he said.

Druckenmiller once managed George Soros’ Quantum Fund and shot to fame after helping make a $10 billion bet against the British pound in 1992. He later oversaw $12 billion as president of Duquesne Capital Management before closing his firm in 2010. 

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