<p>You might not realize it, but Friday, May 15, was one of the most important days of the second quarter -- and not just because it marked Jerome Powell's final day as Fed chair. It was the deadline for institutional investors with over $100 million in assets under management to file Form 13F with regulators.</p>
<p>With Warren Buffett retired, Stanley Druckenmiller of Duquesne Family Office might be the new most-followed billionaire money manager on Wall Street. During the March-ended quarter, Duquesne's 13F filing shows Druckenmiller dumped his entire stake in Google parent <strong>Alphabet</strong> <span class="ticker-mention inline-flex items-center font-bold">(GOOGL <span class="ml-1 text-red-900">0.13%</span>)</span><span class="ticker-mention inline-flex items-center font-bold">(GOOG <span class="ml-1 text-red-900">0.19%</span>)</span>. At the same time, he piled into a trio of the stock market's hottest memory and storage stocks: <strong>Sandisk</strong> <span class="ticker-mention inline-flex items-center font-bold">(SNDK <span class="ml-1 text-red-900">5.30%</span>)</span>, <strong>Micron Technology</strong> <span class="ticker-mention inline-flex items-center font-bold">(MU <span class="ml-1 text-red-900">5.81%</span>)</span>, and <strong>Seagate Technology</strong> <span class="ticker-mention inline-flex items-center font-bold">(STX <span class="ml-1 text-red-900">6.87%</span>)</span>. </p>
<div><img alt="A stock chart displayed on a computer monitor that's reflecting on the eyeglasses of a money manager." width="880" height="587" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NzA2MjMvbW9uZXktbWFuYWdlci1zdG9jay1jaGFydC1tYXJrZXQtbGV2ZWwtMi1kYXRhLWludmVzdC1nZXR0eS5qcGcmdz0zODQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NzA2MjMvbW9uZXktbWFuYWdlci1zdG9jay1jaGFydC1tYXJrZXQtbGV2ZWwtMi1kYXRhLWludmVzdC1nZXR0eS5qcGcmdz0zODQw"/>
<p>Image source: Getty Images.</p>
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<h2>Duquesne's billionaire boss jettisoned the hottest member of the &#34;Magnificent Seven&#34;</h2>
<p>Perhaps the most eyebrow-raising move in billionaire Stanley Druckenmiller's portfolio was the sale of all 385,000 shares of Alphabet's Class A stock (GOOGL) during the first quarter.</p>
<p>One of the more logical reasons for the sale may be simple profit-taking. Druckenmiller oversees an active fund, with an average hold time of roughly eight months. If presented with the opportunity to cash in his chips and lock in a sizable profit, Duquesne's lead investor often takes it. In the two-plus quarters that Druckenmiller's fund held Alphabet stock, it appreciated by well over 50%.</p><div><div id="foolcom_sidebar_top_container"></div></div>
<section><div><div><div><small><div>Expand</div></small></div><div><img alt="Alphabet Stock Quote" width="64" height="64" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0dPT0dMLnBuZyZ3PTEyOA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0dPT0dMLnBuZyZ3PTEyOA"/></div><div><h2>NASDAQ: GOOGL</h2><div>Alphabet</div></div></div><div><div><div>Today's Change</div><div>(-0.13%) $-0.50</div><div>Current Price</div><div>$396.28</div></div><div></div></div></div><div><div></div><div><h3>Key Data Points</h3><div><div>Market Cap</div><div>$4.8T</div><div>Day's Range</div><div>$394.61 - $408.60</div><div>52wk Range</div><div>$162.00 - $408.61</div><div>Volume</div><div>1.2M</div><div>Avg Vol</div><div>29M</div><div>Gross Margin</div><div>60.43%</div><div>Dividend Yield</div><div>0.21%</div></div></div></div></section>
<p>It can also be argued that the hottest member of the &#34;Magnificent Seven&#34; lost its value proposition following a 140% rally over the last year. A company that could be nabbed for under 17 times forward-year earnings a year earlier is now trading at nearly 28 times next year's earnings per share (EPS).</p><div></div>
<p>Lastly, Druckenmiller has been openly skittish about artificial intelligence (AI) stocks. While he views the technology as a long-term winner, he believes that &#34;AI might be a little overhyped now&#34; and &#34;AI could rhyme with the internet,&#34; according to a CNBC interview from May 2024. </p><div><div id="in_line_article_pitch_container"></div></div>
<div><img alt="Two engineers checking wires and switches on an enterprise data center server tower." width="880" height="587" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NzA2MjMvZGF0YS1jZW50ZXItZW1wbG95ZWVzLWFydGlmaWNpYWwtaW50ZWxsaWdlbmNlLW5ldHdvcmstc3dpdGNoLWNsb3VkLWdldHR5LmpwZyZ3PTM4NDA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84NzA2MjMvZGF0YS1jZW50ZXItZW1wbG95ZWVzLWFydGlmaWNpYWwtaW50ZWxsaWdlbmNlLW5ldHdvcmstc3dpdGNoLWNsb3VkLWdldHR5LmpwZyZ3PTM4NDA"/>
<p>Image source: Getty Images.</p>
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<h2>Stanley Druckenmiller has an insatiable appetite for memory and storage stocks</h2>
<p>At the other end of the spectrum, Duquesne Family Office's chief investor added more than two dozen new positions. Among them are 38,155 shares of Sandisk, 50,700 shares of Seagate Technology, and 23,400 shares of Micron Technology.</p>
<p>Though Druckenmiller has expressed short-term skepticism about AI stocks, this clearly hasn't extended into the memory and storage space. The rapid expansion of AI data center infrastructure calls for <em>a lot</em> of high-capacity hard drives, high-bandwidth memory (HBM), NAND flash memory, and DRAM. Demand for this hardware has overwhelmed its supply, leading to significant price increases and a parabolic move higher in gross margin for Sandisk, Micron, and Seagate Technology.</p>
<section><div><div><div><small><div>Expand</div></small></div><div><img alt="Sandisk Stock Quote" width="64" height="64" src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL1NOREsucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL1NOREsucG5nJnc9MTI4"/></div><div><h2>NASDAQ: SNDK</h2><div>Sandisk</div></div></div><div><div><div>Today's Change</div><div>(-5.30%) $-74.60</div><div>Current Price</div><div>$1333.01</div></div><div></div></div></div><div><div></div><div><h3>Key Data Points</h3><div><div>Market Cap</div><div>$197B</div><div>Day's Range</div><div>$1277.33 - $1440.00</div><div>52wk Range</div><div>$35.79 - $1600.00</div><div>Volume</div><div>132K</div><div>Avg Vol</div><div>18M</div><div>Gross Margin</div><div>56.04%</div></div></div></div></section>
<p>The wild thing about this memory and storage trio is that two of the three remain historically inexpensive, relative to analysts' forward-year EPS estimates, despite their shares absolutely skyrocketing. Sandisk and Micron are up 3,370% and 660%, respectively, over the trailing year, yet their forward price-to-earnings ratios are just 8 and 7 amid a historically pricey stock market.</p>
<p>Given Druckenmiller's track record of seeking out winning short-term trades, he likely anticipates that the relative cheapness of this trio, and the overwhelming demand for high-capacity hard drives, HBM, NAND, and DRAM, will supersede any near-term worrisome headlines on Wall Street.</p><div id="article_pitch_container"></div><div id="promobox_container"></div>

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<p>Billionaire Stanley Druckenmiller has sold his entire stake in Alphabet and invested heavily in memory and storage stocks, including Sandisk, Micron Technology, and Seagate Technology. His decision follows a significant profit from Alphabet, which appreciated over 50% during his holding period. Druckenmiller's shift reflects skepticism about AI stocks while capitalizing on the growing demand for memory and storage solutions amid AI infrastructure expansion.</p>

- On May 15, institutional investors were required to file Form 13F, marking a significant date in the financial calendar.  
- Stanley Druckenmiller sold his entire stake in Alphabet and invested heavily in memory and storage stocks like Sandisk, Micron Technology, and Seagate Technology, indicating a shift in focus from AI-related investments.  
- This move aligns with his strategy of capitalizing on short-term opportunities, driven by strong demand for data storage solutions amidst AI infrastructure expansion.

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Billionaire Stanley Druckenmiller Dumped Google Parent Alphabet and Piled Into a Trio of Skyrocketing Memory and Storage Stocks