Three hedge fund billionaires purchased shares of Nvidia and Western Digital during the third quarter, according to recent SEC filings. Cliff Asness of AQR Capital Management, Israel Englander of Millennium Management, and Steven Cohen of Point72 Asset Management all reported buying the stocks.
Cliff Asness beat the S&P 500 by 10 percentage points over the last three years. Nvidia is his largest holding, and he owns a small position in Western Digital. The stocks collectively account for 3% of his portfolio.
Israel Englander beat the S&P 500 by 28 percentage points over the last three years. Nvidia is his largest holding, and he owns a small position in Western Digital. The stocks collectively account for 2% of his portfolio.
Steven Cohen beat the S&P 500 by 31 percentage points in the last three years. Nvidia is his largest holding, and he owns a small position in Western Digital. The stocks collectively account for 3% of his portfolio.
Both stocks have seen significant gains since artificial intelligence became one of Wall Street's top investment themes in January 2023. During that period, Nvidia has returned 1,180% and Western Digital has returned 830%.
Nvidia is known for its graphics processing units, chips also called data center accelerators. The company develops full rack-scale systems that combine GPUs with CPUs and networking gear. Nvidia also provides software tools called CUDA.
"Our TCO is so good that even when the competitors chips are free, it's not cheap enough," said Nvidia CEO Jensen Huang. Wall Street estimates Nvidia's adjusted earnings will increase at 67% annually through the fiscal year ending in January 2027. The current valuation is 46 times earnings.
Western Digital designs and manufactures data storage devices. The company focuses on hard disk drives, which are about six times cheaper per terabyte than solid state drives. Western Digital led the market in HDD shipments during the first half of 2025.
In the first quarter of fiscal 2026, Western Digital reported revenue increased 27% to $2.8 billion. Non-GAAP earnings increased 137% to $1.78 per diluted share. Wall Street estimates adjusted earnings will grow at 26% annually through the fiscal year ending in July 2027.
The current valuation is 34 times earnings. Western Digital's median target price is $200 per share, which implies 10% downside from its current share price.