In this article, we will discuss: 10 Best Stocks to Buy in 2026 According to Billionaire D.E. Shaw. For more stocks, you can head to 5 Best Stocks to Buy in 2026 According to Billionaire D.E. Shaw.
In the hedge fund industry, few names are more recognizable than that of D. E. Shaw. Shaw is known for having founded his namesake hedge fund, D. E. Shaw & Co. He is among the richest people in the world, with a net worth of $8.8 billion as of July 2026 according to Forbes Magazine. Having set up the firm in 1988, Shaw took a back seat in 2002 when he stopped managing trading operations to focus on DE Shaw Research instead.
When it comes to performance, D. E. Shaw, along with other heavy hitters such as Citadel and Bridgewater, is among the top globally. In January, a Reuters report claimed that the fund’s two flagship funds, i.e. the Oculus Fund and the Composite Fund, generated net returns of 28.2% and 18.5% in 2025, respectively. Data from DisruptionBanking shows that the global hedge fund average was 18%, which implies that Shaw’s funds outperformed the average fund.
With first quarter hedge fund filings available, we decided to check which stocks were prominent in D. E. Shaw & Co.’s 13F filings. So read on below to find out!
David E. Shaw of D.E. Shaw
Our Methodology
For this article, we scanned D. E Shaw & Co.’s Q1 13F filings and picked its top holdings. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. Meta Platforms Inc. (NASDAQ:META)
D. E. Shaw’s Q1 2026 Stake: $1 billion
Social media giant Meta Platforms Inc. (NASDAQ:META) has been in the news lately due to its reported decision to sell excess computing capacity. The reports come as discussions and debates about its spending, despite not having an established cloud computing business is rampant. Meta Platforms Inc. (NASDAQ:META)’s shares are down by 13% over the past year and by 2.9% year-to-date. The firm is also under fire due to the purportedly addictive nature of its social media platforms. On June 30th, a California judge rejected the firm’s application to dismiss a lawsuit filed by state attorneys accusing Meta Platforms Inc. (NASDAQ:META) of designing platforms to be addictive to teenagers.
Cantor Fitzgerald discussed the shares on July 6th. It reiterated a Buy rating and a $750 share price target on Meta Platforms Inc. (NASDAQ:META)’s shares. Amidst its aggressive focus on artificial intelligence, a media report in July suggested that the firm’s CEO was unhappy about the pace of progress of agentic artificial intelligence.
9. Micron Technology Inc. (NASDAQ:MU)
D. E. Shaw’s Q1 2026 Stake: $1.2 billion
Micron Technology Inc. (NASDAQ:MU) has shaped up to be one of the hottest stocks on the market. The shares are up by 711% over the past year and by 214% year-to-date. More recently, the shares have struggled and have had to contend with several dips. As Micron Technology Inc. (NASDAQ:MU) is the only American company capable of manufacturing high end memory chips, its ability to cater to the AI industry has been at the center of debate for the firm. For instance, Phillip Securities kept a Buy rating on the shares and raised the share price target to $1,870 from $530 on June 29th. The financial firm discussed Micron Technology Inc. (NASDAQ:MU)’s ability to enter into more long term agreements, as it outlined that it expects the current memory chip shortage to extend beyond 2027.
Micron Technology Inc. (NASDAQ:MU) also announced on July 9th that it would invest an additional $3 billion into chip manufacturing facilities in America. The investment builds on the firm’s earlier plans. Its chief procurement officer outlined that “securing a reliable supply of critical input materials is essential to supporting Micron’s long-term growth and technology roadmap.”
ClearBridge Large Cap Growth Strategy discussed Micron Technology, Inc. (NASDAQ:MU) in its Q2 2026 investor letter:
“The Russell rebalance substantially reduced the weighting of the Magnificent Seven in the Russell 1000 Growth Index (RLG), with Apple, Microsoft and Amazon shifting toward the Russell 1000 Value Index while Alphabet’s weight increased (Exhibit 1). Factoring in the net effect of these changes, the index saw a reduction in top-heavy concentration, which we view as a welcome change. At the same time, the rebalance has caused the index to become more momentum oriented, with Micron Technology, Inc. (NASDAQ:MU) entering the benchmark at an almost 400 basis point weighting the most immediate example.
With semiconductors becoming more than 30% of the RLG, we also initiated a position in Micron, a leading memory provider that we believe is well-positioned to benefit from growing AI infrastructure investment as AI data centers require significantly more memory than traditional computing systems. We see Micron as a differentiated way to gain exposure to the AI buildout while diversifying our semiconductor holdings.”
8. The Home Depot, Inc. (NYSE:HD)
D. E. Shaw’s Q1 2026 Stake: $1.2 billion
Home improvement retailer The Home Depot, Inc. (NYSE:HD)’s shares have remained weak in 2026. They are down by 8.7% over the past year and by 2% year-to-date. 404 Media was out with an interesting report about the firm, as it outlined that it and Lowe’s rely on Flock Safety’s license plate system to capture data in order to combat theft. The Home Depot, Inc. (NYSE:HD) also announced on July 8th that it was expanding deliveries for overseas military families. The firm expanded its partnership with Military Exchanges to also include deliveries to Army Post Office (APO), Fleet Post Office (FPO) and Diplomatic Post Office (DPO) addresses.
Wolfe Research cut the firm’s rating to Peer Perform from Outperform on June 23rd. The financial firm outlined that The Home Depot, Inc. (NYSE:HD)’s long term earnings potential was being evaluated through the lens of its shift to professional contractors and the impact of the lock-in effect of mortgages. The Home Depot, Inc. (NYSE:HD) has also been present in D. E. Shaw’s 13F filings for quite some time. According to Insider Monkey’s data, the stock has been present in the filings since 2011. except for a brief exit in Q4 2015.
7. Boston Scientific Corporation (NYSE:BSX)
D. E. Shaw’s Q1 2026 Stake: $1.5 billion
Boston Scientific Corporation (NYSE:BSX) is one of the largest medical device companies in America. Its shares are down by 56% over the past year and by 52% year-to-date. Jefferies was out with a devastating note about the firm as it slashed the share price target to $67 from $100 and kept a Buy rating on the stock. Jefferies commented that a major dip in its US Watchman sales growth forecast to 5% from 14% plaed a major role in its coverage for Boston Scientific Corporation (NYSE:BSX). The Watchman is a heart implant used to prevent strokes and blood clots in people with heart valve problems. Jefferies outlined that it was wary about the market adoption of the Watchman FLX device.
Earlier in the month, Bank of America had reduced Boston Scientific Corporation (NYSE:BSX)’s share price target to $61 from $68 and kept a Buy rating on the stock. A lower utilization for the firm’s devices played a role in BofA’s coverage. Earlier in the year, Boston Scientific Corporation (NYSE:BSX) made a move into the aortic stenosis market as it invested $1.5 billion in MiRus LLC in order to secure rights to the target’s TAVR system.
6. Tesla, Inc. (NASDAQ:TSLA)
D. E. Shaw’s Q1 2026 Stake: $1.6 billion
Electric vehicle manufacturer Tesla, Inc. (NASDAQ:TSLA)’s shares are up by 37% over the past year and are down by 7.2% year-to-date. Barclays discussed the firm on June 25th as it kept an Equalweight rating and a $360 share price target. The bank outlined that Tesla, Inc. (NASDAQ:TSLA) could deliver 418,000 vehicles in its second quarter to beat analyst estimates. However, Barclays added that despite the beat, investors will be focused on the firm’s pivot to robotics, artificial intelligence, and the Robotaxi platform as opposed to the car deliveries. While vehicle deliveries remain a key portion of Tesla, Inc. (NASDAQ:TSLA)’s income statement, its CEO, Elon Musk, has asserted on multiple occasions that he plans to establish his company as a leader in humanoid robot production.
On July 7th, RBC Capital raised Tesla, Inc. (NASDAQ:TSLA)’s share price target to $500 from $475 and kept an Outperform rating on the stock. The bank discussed SpaceX and the potential for it to acquire the car company. SpaceX’s IPO and its massive market capitalization have generated speculation about such a deal, which makes Tesla, Inc. (NASDAQ:TSLA)’s upcoming earnings even more crucial when it comes to the earnings call.
While we acknowledge the potential of TSLA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TSLA and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see 5 Best Stocks to Buy in 2026 According to Billionaire D.E. Shaw.
Disclosure: None. Follow Insider Monkey on Google News.
