27.5% of Stanley Druckenmiller's $3.7 Billion Portfolio Is Invested in These 3 Under-the-Radar AI Stocks

Bram Berkowitz, The Motley Fool

Mon, Apr 7, 2025, 4:00 AM 5 min read

Stanley Druckenmiller is successful an elite league of investors that includes the likes of Warren Buffett. He ran his hedge money firm, Duquesne Capital Management, for 30 years, posting eye-popping mean yearly returns of 30%. While Druckenmiller closed the steadfast successful 2010, the George Soros protégé is inactive investing done his household office, the Duquesne Family Office, making him a large exemplary for investors to follow. Roughly 27.5% of Druckenmiller's portfolio is invested successful 3 under-the-radar artificial quality (AI) stocks.

Druckenmiller's largest presumption astatine the extremity of the 4th fourth was successful the molecular biotech institution Natera (NASDAQ: NTRA). Duquesne's presumption astatine the extremity of the 4th fourth amounted to implicit $564 million.

Natera combines cell-free DNA exertion with statistical algorithms powered by instrumentality learning to place diseases and conditions . The company's extremity is to supply a personalized signifier of familial investigating that tin pass radical of conditions and diseases earlier successful their beingness cycles. Currently, the institution focuses connected women's health, oncology, and organ health. In women's health, Natera created minimally invasive tests to place familial conditions similar Down syndrome. In oncology, the institution developed a personalized humor DNA test, and successful organ wellness the institution makes tests to measure for kidney, heart, and lung transplant rejection, arsenic good arsenic tests for chronic kidney disease.

In caller quarters, Natera's execution truly started to wage off. Revenue of $476 cardinal successful the 4th fourth jumped 53% twelvemonth implicit year, arsenic processed tests climbed sharply. After turning cash-flow-positive successful the archetypal 4th of 2024, Natera generated $46 cardinal of escaped currency travel successful the 4th quarter. The institution besides trimmed its losses successful 2024 from $3.78 per stock to $1.53.

While the banal is not inexpensive trading astatine astir a $19.5 cardinal marketplace cap, the institution is scaling its existent offerings, has tons of enlargement opportunities, and boasts a cleanable equilibrium expanse with astir $1 cardinal of currency with precise small debt, truthful the institution looks good positioned.

Coherent (NYSE: COHR) designs optoelectronic components, devices, and laser systems for companies successful the industrial, communications, and electronics industries. So however does this fit into AI? Well, the company's ultra-quick optical transceivers and optical components person almighty bandwidth that plays a captious relation successful powering information centers and AI applications. In fact, the AI spot king Nvidia buys Coherent's transceivers.