Investor Druckenmiller expects hard landing for U.S. economy, bullish on AI

NEW YORK, June 7 (Reuters) – U.S. investor Stanley Druckenmiller, chairman and Chief Executive Officer at Duquesne Family Office, said on Wednesday that he still expects a hard landing for the U.S. economy, as inflation persists, but offered a positive outlook for Nvidia.

Speaking at a Bloomberg investment conference, he said the impact of higher interest rates had yet to be felt in some sectors of the economy, with more “shoes to drop” after the banking turmoil this year.

Still, the investor is bullish on artificial intelligence, mainly on chipmaker Nvidia Corp (NVDA.O). “Unlike crypto I think AI is real,” he said. “If it’s as big as I think it is, Nvidia is something we’re going to want to own for at least two or three years. Not for 10 months. And maybe longer.”

Nvidia’s shares have more than doubled year to date amid an AI boom. The company briefly touched the $1 trillion market capitalization late in May.

Reporting by Carolina Mandl and Davide Barbuscia in New York

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Davide Barbuscia covers macro investment and trading out of New York, with a focus on fixed income markets. Previously based in Dubai, where he was Reuters Chief Economics Correspondent for the Gulf region, he has written on a broad range of topics including Saudi Arabia’s efforts to diversify away from oil, Lebanon’s financial crisis, as well as scoops on corporate and sovereign debt deals and restructuring situations. Before joining Reuters in 2016 he worked as a journalist at Debtwire in London and had a stint in Johannesburg.