Billionaire investor Stanley Druckenmiller says he is upbeat on one nascent technology sector even amid signs of a looming recession.
In a recent interview with Bloomberg, Druckenmiller that artificial intelligence (AI) technology is a “huge thing” and could be as revolutionary as the internet.
According to the billionaire investor, the AI tech sector could continue to outperform the rest of the stock market if the companies involved can show signs of sustained growth amid a recessionary environment.
“I do believe, unlike crypto, I think AI is real. t could be as transformative as the Internet. t’s a huge thing.
think I’ve argued publicly that if [consumer] staples can go up in price in a recession, why can’t a company like Nvidia go up if their orders and earnings go up 70% in a hard anding, which is what I think would probably happen. t’s not clear that me that Nvidia goes down despite the valuation level.
History has proved if you have very good earnings in a recession and they’re sustainable – if they’re not the market somehow figures it out –those stocks will do just fine.”
According to Druckenmiller, AI has dominated the long positions of his investment firm for the last five or six months.
While the billionaire investor is bullish on artificial intelligence, he says that not all AI firms are destined for success as the sector is still in the formative stages.
ll of AI is not going to make it through whether we have a recession or not because they haven’t separated the wheat from the
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