Great Minds Think Alike: SanDisk, Micron, Seagate, ARM & Broadcom Attract A Big Fan

Stanley Druckenmiller just made a few portfolio moves that Wall Street is watching rather closely.

The billionaire founder of Duquesne Family Office – widely regarded as the most influential active money manager since Warren Buffett’s retirement – has completely exited his position in Alphabet and piled into five AI hardware stocks instead.

His latest 13F filing, covering holdings as of March 31st, reveals a bet on the physical infrastructure that powers artificial intelligence (AI), not the software giants who ride it.

Names Druckenmiller has invested in include SanDisk, Micron, Seagate, Broadcom, and Arm.

Why Druckenmiller walked away from Google stock

Duquesne has offloaded its entire stake in Alphabet, selling all 385,000 Class A shares worth nearly $153 million – a position the billionaire had just built up by 277% in the prior quarter.

The exit looks like disciplined profit-taking, given Google, in the two-plus quarters Druckenmiller held the stock, appreciated by more than 50%.

Following this surge, Google shares are trading at roughly 28x forward earnings, versus 17x only just a year ago.

Druckenmiller has also been openly skeptical about AI valuations – saying he believes “AI might be a little overhyped now” and that “AI could rhyme with the internet.”

And when the valuation no longer fits the thesis, the billionaire moves on – fast.

Why he loaded up on SanDisk stock

Duquesne opened a new position in SanDisk, buying 38,155 shares worth about $24.2 million – and the timing was exceptional.

SNDK’s Q3 report was the giveaway; revenue hit $6 billion versus $4.7 billion estimates, up 251% year-over-year, with data center sales of $1.5 billion, up 645% year-over-year.

CEO David Goeckeler described the results as “a fundamental inflection point,” citing a structural shift toward AI inference workloads that demand high-speed NAND flash at scale.

With hyperscalers locking in multi-year supply agreements, SanDisk is no longer just a consumer storage brand – it has become a critical node in the AI infrastructure stack.

Why Micron shares are attractive for Druckenmiller

Druckenmiller’s bet on Micron stock may prove to be his sharpest call of the quarter.

Micron delivered Q2 revenue of $23.9 billion – a 196% increase year-over-year – cementing its position as one of the biggest beneficiaries of the AI boom.

The numbers didn’t just beat estimates – they demolished them. Earnings per share (EPS) came in at $12.07, far above the $9.33 consensus, while revenue exceeded forecasts by nearly $3.7 billion.

And the outlook is even more striking: for the current quarter, MU guided for about $33.5 billion in revenue, implying year-over-year growth of over 200%.

As CEO Sanjay Mehrotra put it, Micron is an essential AI enabler and the only US-based memory manufacturer – a strategic asset in a supply-constrained world.

His thesis on owning Seagate stock

Old-fashioned spinning hard drives sound like a strange AI play, but Druckenmiller saw something others missed; Duquesne bought 50,700 Seagate shares valued at about $19.9 million.

The thesis is playing out emphatically. Seagate’s Q3 delivered revenue of $3.1 billion – up 44% year-over-year, with adjusted earnings per share of $4.10 – far ahead of analyst expectations.

Better yet, demand visibility is “extraordinary”: nearline capacity is nearly fully allocated through calendar 2027, with build-to-order contracts being finalized through the end of fiscal 2027.

Moreover, the top three global cloud providers’ remaining purchase obligations nearly doubled to about $1.1 trillion; Seagate is essentially sold out well into next year.

Why Druckenmiller invested in Broadcom shares

Druckenmiller initiated a significant new stake in Broadcom, purchasing roughly 196,000 shares worth $60.7 million – the largest single new position in the batch.

Broadcom is the dominant designer of custom AI accelerators for hyperscalers like Google and Meta, offering a cost-effective alternative to Nvidia’s off-the-shelf GPUs.

Q1 AI revenue hit $8.4 billion, up 106% year-over-year, above the company’s own forecast – and the acceleration isn’t slowing: AVGO guided for AI semiconductor revenue of $10.7 billion in Q2, with total Q2 revenue expected to reach $22 billion, up 47% year-over-year.

CEO Hock Tan has stated plainly that AI revenue growth is accelerating, with the company eyeing $100 billion in cumulative AI-related sales by 2027.

Here’s why he bought ARM shares as well

Rounding out the five picks is Arm Holdings, the British chip-design firm whose instruction set architecture sits inside virtually every modern processor.

Duquesne opened a new position of 106,700 ARM shares worth about $16.1 million.

ARM is benefiting structurally from AI’s spread across every compute environment.

For the full fiscal year, Arm posted record revenue of $4.9 billion, with royalty revenue up 21% and licensing revenue up 25%, its third consecutive year of more than 20% revenue growth since going public.

Most tellingly, data center royalties more than doubled year-over-year as cloud companies increasingly turn to Arm-based custom chips.

With AI moving from training to inference at the edge and in data centers alike, Arm’s architecture is everywhere – and Druckenmiller is betting it stays that way.

Share Recommendations

SanDisk. SNDK

Micron Electronics. MU

Seagate Technologies. STX

ARM Holdings. ARM

Broadcom. AVGO

Above is a chart of the Nasdaq 100 Technology index (NDXT). As I write, it is up over 3pc on the day v a gain of just 0.55pc in the Nasdaq 100 (NDQ). This is a huge difference. The reason why is that NDXT is an equal-weighted index, whereas the Nasdaq 100 is dominated by the megacaps. The largest stocks (10) account for nearly 70pc of the index. The mega caps are struggling. This is a big change.

A new breed of stocks is coming through, led by AI hardware, all the stocks that are benefiting explosively from the global data centre infrastructure investment boom. To make AI work the way Joe Public imagines it is going to – a fountain of knowledge able to think and reason – requires stupendous investment. Companies, countries, and institutions are making this investment because the prizes for doing so are incredible – a brave new world awaits, but it requires stupendous spending to get there.

An important conclusion from this is that the old breed of megacaps, Apple, Amazon, Alphabet, Meta Platforms, Tesla, Microsoft and Nvidia are in danger of becoming yesterday’s story. I am bullish on Apple, but it looks like an elephant that can’t jump. Nvidia is the most exciting member of the group, but there is even a question mark over them as this epic changing of the guard takes place.

Look at what Druckenmiller did: sell GOOGL shares and reinvest in a new breed of hot technology investments, including the memory sector. I think he is a smart guy.

Strategy – Turn Capital Gains To Tax-Free Income

I wrote in an early alert about my idea of building a holding in a spread betting account, reaching a certain level, say a gross value of $100,000 and then sharing any subsequent gains between reducing leverage and spending the money on treats.

I am so impressed with this idea that I have decided to do it. There is no point for me in trying to build an immensely valuable portfolio. I need the money to spend now. This way I can do both.

The risk lies in which stock you choose to do it, because you need a winner in order to make it work. I am on a hot streak at the moment, so you could choose one of my picks.

Or you could play it safe and choose an ETF. One of my favourite ETFs is QQQ, which tracks the Nasdaq 100, but this may not be such a good idea now with the Nasdaq 100 dominated by the stagnating megacaps.

ETF Recommendations

Nasdaq Technology 100 Sector index. QTEC

I think this index could be a better pick. It is equal-weighted, so the mega caps are just like any other stock. If the era of index performance being dominated by a handful of mega caps is coming to an end, this index may be the future.

Needless to say, I am not going the index route, not nearly enough adrenaline for me.