10 AI Stock Picks and Performance of Billionaire Stanley Druckenmiller

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#4 Alphabet (NASDAQ:GOOGL)

Druckenmiller Stake as of Q2: $120.2 Million

Year to Date Performance (through November 9): -9%

Return since June 30th: -19.3%

Druckenmiller sold his Alphabet stake in the first quarter and then changed his mind. His fund bought 336,300 shares in the second quarter, and the stake made up 2.31% of his portfolio. Alphabet is one of only two stocks on this list that are down this year.

The bull case is that Google Cloud has become a second growth engine. In the third quarter, Cloud revenue grew 103% from the same quarter a year ago, and CEO Sundar Pichai said demand for its AI infrastructure is huge. Nearly 100 customers use its TPUs, and Alphabet now sells them outside the company. Search revenue still grew 12% from a year earlier. Total revenue rose 25% and operating income rose 30% in the same period. Alphabet also owns about 5% of SpaceX, which went public in June. The stock is more than 30% below its May high, which gives buyers a lower entry point.

Alphabet’s free cash flow turned negative in the second quarter for the first time since the company went public, while Search revenue still grew 17% from a year earlier. Find out why investors still like it.

#3 Amazon (NASDAQ:AMZN)

Druckenmiller Stake as of Q2: $129.1 Million

Year to Date Performance (through November 9): +18%

Return since June 30th: 12%

Amazon Web Services rents out AI computing power to thousands of companies, and Amazon also builds its own AI chips. Druckenmiller’s fund added 495,800 shares in the second quarter and now owns 541,600 shares as of Q2. The stake made up 2.48% of his portfolio, up from 0.28% in the first quarter. His fund also held call options on Amazon shares.

Amazon could benefit even if the AI data center build-out slows after the midterm elections, Wall Street analyst Dan Ives said in a note to clients. He assumes about 10% of the 800 to 1,000 data centers planned in the US do not get built, and he tested a harsher case where 30% are cancelled over the next 18 months, according to the note. In either case, Amazon and other big cloud companies that already have data center capacity running become more valuable, because less new capacity competes with them, Ives wrote. He expects Big Tech spending growth to peak in 2027, earlier than his old forecast of 2028 or 2029, and he expects the big companies to raise about 25% less capital over the next year, Ives said. The AI boom still continues at a slower pace, which he called “hugely bullish” for Amazon, Microsoft, Alphabet and Meta Platforms.

L1 Capital expects Amazon Web Services spending to push Amazon’s free cash flow negative, but the fund says the market is too focused on near-term cash flow. Click to see why the fund stays optimistic.

#2 STMicroelectronics (NYSE:STM)

Druckenmiller Stake as of Q2: $232.4 Million

Year to Date Performance (through November 9): +62%

Return since June 30th: -40.4%

STMicroelectronics is a European company that makes chips for cars and industrial equipment. It now also sells chips to AI data centers, where they manage power and move data. Druckenmiller’s fund added 490,000 shares in the second quarter and now owns 3,102,880 shares.

STMicroelectronics bull case moves around a recovery play with an AI boost. Profits fell hard during the car and industrial slump, so the stock offered a chance to buy before earnings caught up. AI data center demand gives it a second growth driver. In its recently reported quarter, revenue rose 17.9% from the same quarter a year ago and beat Wall Street’s estimate. Sales in the segment that holds AI and satellite parts grew 46.2% from a year earlier. Management raised its 2026 data center sales outlook and expects 2027 to be much higher. It also expects factory changes to add more than 4 percentage points to gross margin by early 2028.

STMicroelectronics expects its AI data center sales to roughly double next year and is closing four older factories to lift its profit margins, though its power chip business still loses money. Check the risks and the upside here.

#1 Taiwan Semiconductor Manufacturing (NYSE:TSM)

Druckenmiller Stake as of Q2: $281.6 Million

Year to Date Performance (through November 9): +22%

Return since June 30th: -18.4%

TSMC makes chips for Nvidia, AMD and Apple, so much of the AI boom runs through its factories. Druckenmiller’s fund owns 589,680 shares, the largest stake on this list. It made up 5.40% of his portfolio, up from 4.96% in the first quarter. He added 94,400 shares in the second quarter, a 19.1% increase. The stock is up 22% this year through November 9.

Taiwan Semiconductor Manufacturing (TSM) remains well-positioned to benefit from long-term AI growth, regardless of which chip designer emerges as the industry leader. Its technological dominance in advanced semiconductor manufacturing, including its N2 process and CoWoS packaging technology, gives it significant pricing power and a competitive advantage that rivals may struggle to replicate. Demand for advanced chips continues to exceed supply, with production capacity largely booked through 2027. The company also benefits from strong profitability, software-like margins and substantial cash generation. Bulls say the recent semiconductor selloff could present an attractive entry point for long-term investors.

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