Billionaire Stanley Druckenmiller Just Bet Big On These 2 Stocks

Legendary investor Stanley Druckenmiller founded the Duquesne Capital Management hedge fund in 1981 where he achieved 30% average annual returns and never had a losing year. After closing the fund in 2010, he transitioned to running Duquesne Family Office, managing his personal $11 billion fortune. 

Perhaps less well known is that Druckenmiller was also George Soros’s lead portfolio manager at Quantum Fund where he orchestrated the $1 billion profit from shorting the British pound in 1992. It was the trade that caused Soros to become infamous as “the man who broke the Bank of England.”

Today, Druckenmiller owns almost $3 billion worth of securities, and in the first quarter of 2025, his portfolio was quite active. While he sold down his position in 18 different stocks, he started 12 new ones and added to his holdings in 14 others.

Yet he bet big on two stocks in particular. They’re not the biggest positions in his portfolio, but the big swings he took on them are notable.

Taiwan Semiconductor (TSM)

The first stock Druckenmiller bought a large stake in was chipmaker Taiwan Semiconductor Manufacturing (NYSE:TSM). The billionaire bought more than 491,000 shares at an average price of around $181 per share, bringing his total to almost 599,000 shares, a 457% increase in his total position. He now owns $99.4 million worth of the pure play foundry.

With a $1 trillion valuation, Taiwan Semiconductor Manufacturing trades at an attractive 24 times earnings — the median of its five-year average — and less than 18 times estimates. Its unmatched scale, producing 60% of global chips for clients like Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA), drives its value. 

First quarter revenue jumped 39% to $25.5 billion, fueled by AI and 5 nanometer and 3 nanometer wafer demand. Revenue from 3nm technology represented 22% of revenue in Q1 with 5nm accounting for 36%. Earnings of $2.12 per share soared 58% year-over-year.

The company is expected to grow earnings 22% annually for the next five years as AI chip demand surges and global expansion to add 20% capacity by 2028 counters any potential geopolitical risks. 

What most investors forget about Taiwan Semi is that it is also a dividend growth powerhouse. Its quarterly dividend of $0.82 per share yields 1.3%, but the foundry has increased the payout at a 17% compound annual growth rate for the past decade. 

Tariffs may raise costs, but TSM’s pricing power and $80 billion cash reserve help mitigate any impacts. TSM’s technological leadership and growth trajectory make it a must-own stock.

Flutter Entertainment (FLUT)

Flutter Entertainment (NASDAQ:FLUT) is the world’s largest online sports betting and iGaming operator, commanding a dominant position in a rapidly growing $368 billion regulated market.

Druckenmiller bought over 359,000 shares, a 1,980% increase in his existing position, at an average price of around $237 per share. He now owns 377,000 shares valued at $83.6 million.

Flutter owns powerhouse brands like FanDuel, which is the market leader in the U.S., Paddy Power, Betfair, and Sportsbet. It served 14.9 million average monthly players in over 100 countries in the first quarter, an 8% increase from last year. Its business thrives on a diversified revenue mix, with 56% coming from sports betting, 40% from online gaming, and 4% from fantasy sports. It is bolstered by acquisitions like Snaitech in Italy and NSX Group in Brazil, enhancing its global footprint.

CEO Peter Jackson leverages the “Flutter Edge” by combining scalable technology, product innovation, and local brand strength to maintain its leadership position. It has invested $10 billion in FanDuel’s sportsbook operations and marketing since 2018, helping to drive its growth in the U.S. 

While Flutter’s first-quarter revenue rose 8% to $3.7 billion, net income rocketed 289% higher, allowing the sportsbook to turn a $1.57 per share. Analysts maintain a “Strong Buy” rating and a $306 per share one-year price target, implying 21% upside. 

Gambling tends to be a recession-resistant market, and with Flutter’s diversified international presence and revenue streams, it should cushion any volatility. It does face strong competition from DraftKings (NASDAQ:DKNG), but Flutter’s market dominance and growth still make it a stock to buy.

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