"We did cut that and a lot of other positions in late March. I just need a break. We've had a hell of a run. A lot of what we recognized has become recognized by the marketplace now."Stanley Druckenmiller

That's billionaire investor Stanley Druckenmiller, who told the hosts of CNBC's "Squawk Box" Tuesday morning that his firm had cut its stake in chip giant Nvidia Corp.

The shift is a significant one for Druckenmiller, who late last year turbocharged his bet on Nvidia by selling shares and buying call options, according to the latest quarterly filings detailing his funds' positions in U.S. stocks.

Druckenmiller had been talking up the potential of the artificial-intelligence revolution for more than a year, taking on large bets on Microsoft Corp. (MSFT) in addition to Nvidia. He told CNBC that he first bought shares in Nvidia in late 2022 ahead of the launch of ChatGPT, then substantially increased his stake.

Now, he says artificial-intelligence has become overhyped in the short term.

Nvidia (NVDA) shares were already sliding in premarket action on Tuesday ahead of Druckenmiller's comments. They were down 1.1% in recent trade at $910.08 a share.

Druckenmiller said his firm, Duquesne Family Office, had invested in Argentina stocks based on his belief in the country's new president, Javier Milei.

Speaking about the upcoming election in November, he said that if President Joe Biden wins reelection, the U.S. will face stagflation, while if former President Donald Trump wins, the country could see 6% inflation.