Last quarter, billionaire investor Stanley Druckenmiller sold Alphabet and Amazon and bought Nvidia and Microsoft, AI leaders.

According to 13F filings, Stanley Druckenmiller's business cut ties with Alphabet and Amazon last quarter. The company bought call options on Nvidia and boosted its Microsoft holdings. Druckenmiller has been heavily invested in artificial intelligence stocks since 2023.

In a filing with the Securities and Exchange Commission that was made public on Wednesday, it was revealed that Stanley Druckenmiller's business has decided to shift its investments away from Alphabet and Amazon and towards two other mega-cap titans.

A 6.7 percent boost in the previous quarter propelled the Duquesne Family Office's Microsoft holdings to the position of firm leader, owned by the billionaire investor. Even though its holdings in Nvidia dropped 29%, it amassed a large number of call options with a notional value of more than $242 million.

It shows that Druckenmiller's confidence in AI stocks has not wavered. The investor made an inappropriate recommendation in June of last year, outlining plans to hold Nvidia for two years, in light of growing worries about the stock's overvaluation.

By this week, the semiconductor maker had surpassed Amazon and Alphabet to become the third most valuable business in the US, following an eight-month surge of about 90%. As a result of its products being essential in the growth of the AI business, it has had a stratospheric ascent.

After investing $430 million in Nvidia and Microsoft in early 2023, Duquesne's strategy to target both businesses has been in the works for at least a year. Another reason to be bullish on Microsoft is the company's artificial intelligence (AI) efforts.

The software and cloud services it offers incorporate AI technology. Shares have increased by more than 8% so far this year, and the company's most recent earnings report showed revenue that was higher than expected.

"AI is very, very real and could be every bit as impactful as the internet," Druckenmiller had previously stated at the Sohn Investment Conference in 2023.

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