10 Blue Chip Stocks to Buy Now According to Billionaire D. E. Shaw

Published September 17, 2022 at 5:20 pm EDT Updated September 7, 2026 at 2:27 pm EDT

In this article, we discuss 10 Blue Chip Stocks to Buy Now According to billionaire D. E. Shaw.

David E. Shaw is the founder of D. E. Shaw & Co, a quantitative hedge fund. In 1980, he received a bachelor’s degree from the University of California, San Diego, and a PhD from Stanford University. He was a professor at Columbia University until 1986, when he opted to pursue a career in computational finance.

Shaw subsequently joined Morgan Stanley, where he served as vice president of technology for two years until establishing his own business in 1988. He resigned from active management of the hedge fund in 2001, preferring to focus on his research in computational biochemistry. He is presently the head scientist at D.E. Shaw Research.

D. E. Shaw & Co. is based out of New York and is run by David Shaw. D. E. Shaw & Co. is a hedge fund with 34 clients and discretionary assets under management (AUM) of $128 billion. Their last reported 13F filing for Q2 2022 included $85 billion in managed 13F securities and a top 10 holdings concentration of 8.52%. D. E. Shaw & Co.’s largest holding is Amazon.com, Inc. (NASDAQ:AMZN), with 10,919,300 shares held. The fund is known for developing complicated mathematical models and sophisticated computer programs to exploit anomalies in the financial market. The staff at D. E. Shaw & Co. includes world-class mathematicians, physicists, computer scientists, economists, analysts, business-builders, and system architects relying on specialized trading, operational, and compliance expertise developed over 30 years.

Among its holdings, D. E. Shaw & Co owns many blue chip stocks. A blue-chip company is a large corporation with a stellar reputation. These are often large, well-established, and financially strong corporations that have been in operation for many years and have consistent earnings, often paying dividends to shareholders. Investors like blue chip stocks because of the companies’ history of weathering difficult times.

Given the present market volatility with the Federal Reserve increasing interest rates, stocks could continue to decline if economic data doesn’t meet expectations. Nevertheless, there could be an opportunity for long term investors who invest in quality blue chips given the low valuations.

David E. Shaw of D.E. Shaw

Methodology

For our list, we took 10 stocks from David E. Shaw’s D E Shaw 13F portfolio at the end of Q2 2022 that we think have the right mixture of industry leadership, strong fundamentals, and growth potential. We then ranked them from #10 to #1 based on the stake value of D E Shaw portfolio in those stocks in the second quarter. We also provided the number of hedge funds in our database that held shares in the stock at the end of Q2 2022.

10 Blue Chip Stocks to Buy Now According to Billionaire D. E. Shaw.

10. QUALCOMM, Inc. (NASDAQ:QCOM)

D E Shaw’s stake value: $355 million

Percentage of D E Shaw’s Portfolio: 0.41%

Number of Hedge Fund Holders: 71

QUALCOMM, Inc. (NASDAQ:QCOM) designs processors for cellphones and develops and licences wireless technologies. The company’s most important patents revolve around CDMA and OFDMA wireless communications protocols, which form the backbone of all 3G and 4G networks. The company is also a pioneer in 5G network technologies. Qualcomm’s IP is licenced by practically all wireless device manufacturers. The company is also the largest wireless chip supplier in the world, supplying practically every significant phone manufacturer with cutting-edge CPUs. During Q2 2022, D E Shaw decreased its stake in the company by 3%. The fund’s total stake in the company amounted to roughly $355 million, which represented 0.41% of its 13F portfolio.

Recently, QUALCOMM, Inc. signed a pact with Meta Platforms, Inc. (NASDAQ:META) to produce custom chipsets for the social media giant’s Quest virtual reality devices. If Meta Platforms, Inc.’s metaverse is a success, there could be more demand for QUALCOMM, Inc.’s chips.

At the end of Q2 2022, 71 hedge funds tracked by Insider Monkey owned stakes in QUALCOMM, Inc.. Alkeon Capital Management was the stock’s leading stakeholder in Q2, owning QUALCOMM, Inc. shares worth over $541 million. The fund’s position in the stock increased by 4% from Q1 2022.

Alongside Alphabet Inc. (NASDAQ:GOOG), Microsoft Corporation (NASDAQ:MSFT), and Apple Inc. (NASDAQ:AAPL), QUALCOMM, Inc. is one of the blue chips in billionaire D. E. Shaw’s D E Shaw’s 13F portfolio at the end of Q2 2022.

9. Walmart Inc (NYSE:WMT)

D E Shaw’s stake value: $363 million

Percentage of D E Shaw’s Portfolio: 0.42%

Number of Hedge Fund Holders: 67

Walmart Inc (NYSE:WMT), the largest retailer in the United States by revenue, operated over 10,500 locations under 46 banners by the end of the fiscal year 2022, selling a mix of general products and grocery items. The company’s domestic market accounted for 82% of revenues in fiscal 2022, with Mexico and Central America (6%) and Canada (4%) being its major overseas markets. In the United States, the food category accounts for around 56% of sales, general merchandise for 32%, and health and wellness products for 11%. In addition to its own website, the business controls Flipkart and shoes.com, among other e-commerce properties. During Q2 2022, D E Shaw decreased its stake in the company by 47%. The fund’s total stake in the company amounted to roughly $363 million, which represented 0.42% of its 13F portfolio.

Bradley Thomas, KeyBanc analyst, recently initiated coverage of Walmart Inc with an overweight rating and a price target of $155 on the stock. According to the analyst, his rating is supported by a favourable forecast for defensive growth, gains in market share and margin recovery to normalized levels. The analyst stated that Walmart Inc and Target Corporation (NYSE:TGT) outperformed in terms of earnings during the pandemic but are now “under-earning” as a result of “grossly inaccurate inventory positioning” and normalization of margins “bodes positively for patient investors,”.

At the end of Q2 2022, 67 hedge funds tracked by Insider Monkey owned stakes in Walmart Inc. GQG Partners was the stock’s leading stakeholder in Q2, owning Walmart Inc shares worth over $1.1 billion. The fund’s position in the stock decreased by 37% from Q1 2022.

8. Colgate-Palmolive Company (NYSE:CL)

D E Shaw’s stake value: $481 million

Percentage of D E Shaw’s Portfolio: 0.56%

Number of Hedge Fund Holders: 55

Since its establishment in 1806, Colgate-Palmolive Company (NYSE:CL) has developed into a global leader in consumer products. In addition to its oral care line, the company manufactures shampoos, shower gels, deodorants, and home care products that are sold in over 200 countries (international sales account for approximately 70% of the company’s consolidated revenue). During Q2 2022, D E Shaw boosted its stake in the company by 134%. The fund’s total stake in the company amounted to roughly $481 million, which represented 0.56% of its 13F portfolio.

In its Q2 2022 investor letter, First Eagle Investments Global Fund mentioned Colgate-Palmolive Company and explained its insights for the company. Here is what the fund said:

“Shares of consumer staples giant Colgate-Palmolive have performed well as investors rotated into more recessionary-resilient defensive stocks amid the broader selloff during the second quarter. The company raised revenue guidance for 2022 but lowered its margin outlook because of higher costs for raw materials, packaging and logistics; we believe that the company’s size and market share provide it with options to mitigate the inflation challenges it faces. We continue to like Colgate- Palmolive’s dividend and previously announced $5 billion stock buyback program.”

At the end of Q2 2022, 55 hedge funds tracked by Insider Monkey owned stakes in Colgate-Palmolive Company. First Eagle Investment Management was the stock’s leading stakeholder in Q2, owning Colgate-Palmolive Company shares worth over $899 million. The fund’s position in the stock decreased by 1% from Q1 2022.

7. Bank of America Corp (NYSE:BAC)

D E Shaw’s stake value: $516 million

Percentage of D E Shaw’s Portfolio: 0.6%

Number of Hedge Fund Holders: 99

With over $2.5 trillion in assets, Bank of America Corp (NYSE:BAC) is one of the largest financial organizations in the United States. Consumer banking, global wealth and investment management, worldwide banking, and global markets are its four key segments. During Q2 2022, D E Shaw boosted its stake in the company by 196%. The fund’s total stake in the company amounted to roughly $516 million, which represented 0.6% of its 13F portfolio.

Recently, Matt O’Connor, an analyst at Deutsche Bank, decreased his price target on Bank of America Corp to $45 from $51 while keeping a buy rating on the stock. Many banking stocks are down about 25% or more since the January peaks and the market is pricing in a 55%-60% chance of a moderate to severe recession. The analyst commented:

“Assuming this, one could argue banks are in no man’s land in the near term. However, this also implies good upside longer term to the group if (a big IF) the US avoids a meaningful downturn”.

At the end of Q2 2022, 99 hedge funds tracked by Insider Monkey owned stakes in Bank of America Corp. Berkshire Hathaway was the stock’s leading stakeholder in Q2, owning Bank of America Corp shares worth over $31 billion. The fund’s position in the stock remained unchanged from Q1 2022.

6. The Procter & Gamble Company (NYSE:PG)

D E Shaw’s stake value: $530 million

Percentage of D E Shaw’s Portfolio: 0.62%

Number of Hedge Fund Holders: 71

Since its establishment in 1837, The Procter & Gamble Company has grown to become one of the world’s leading consumer goods makers, with annual revenues exceeding $80 billion. It operates with a portfolio of prominent brands, including more than 20 brands , with annual worldwide sales of more than $1 billion each. During Q2 2022, D E Shaw increased its stake in the company by 167%. The fund’s total stake in the company amounted to roughly $530 million, which represented 0.62% of its 13F portfolio.

Bill Chappell, analyst at Truist, reduced his price target on The Procter & Gamble Company to $160 from $175 while maintaining a buy recommendation on the stock. He is a little apprehensive about the consumer environment after the company’s Q4 earnings miss, but he also maintains that the company’s premium-priced portfolio will triumph since the guide was more FX related and had some relative caution built in.

At the end of Q2 2022, 71 hedge funds tracked by Insider Monkey owned stakes in The Procter & Gamble Company. Bridgewater Associates was the stock’s leading stakeholder in Q2, owning The Procter & Gamble Company shares worth over $970 million. The fund’s position in the stock decreased by 2% from Q1 2022.

Like The Procter & Gamble Company, Alphabet Inc., Microsoft Corporation, and Apple Inc. are blue chip stocks that billionaire D. E. Shaw’s D E Shaw owns at the end of Q2 2022.

5. Meta Platforms, Inc. (NASDAQ:META)

D E Shaw’s stake value: $568 million

Percentage of D E Shaw’s Portfolio: 0.66%

Number of Hedge Fund Holders: 184

With 2.5 billion monthly active members, Meta Platforms, Inc. is the largest social network online. The company’s ecosystem primarily comprises of the Facebook app, Instagram, Messenger, and WhatsApp, as well as several services around these products. During Q2 2022, D E Shaw boosted its stake in the company by 117%. The fund’s total stake in the company amounted to roughly $568 million, which represented 0.66% of its 13F portfolio.

Here is what Saga Partners has to say about Meta Platforms, Inc. in its Q2 2022 investor letter:

“Meta (formerly known as Facebook, when I discuss the social media apps specifically, I’ll still refer to Facebook). The Portfolio first bought Meta in Q4’18. It was a controversial investment then and has continued to be to this day. The core mission of the company has been to make the world more open and connected. To do that, it needs to connect everyone in the world, which it largely has done with its nearly 3 billion monthly active users across its family of apps (Facebook, Instagram, and WhatsApp). That type of scale is hard to grasp and is getting pretty close to essentially every smartphone user outside of China and Russia.

From an investing perspective, there are questions surrounding Apple’s iOS App Tracking Transparency (ATT) changes that limit sharing of user data across apps, investments in virtual reality (VR) and augmented reality (AR) i.e. the metaverse, and competitive threats surrounding the rise of TikTok. It seems like only yesterday (or last year) that one of the major risks of Facebook was that the company was too powerful, had too much influence on public opinion, and faced antitrust and regulatory concerns…”

At the end of Q2 2022, 184 hedge funds tracked by Insider Monkey owned stakes in Meta Platforms, Inc.. Fisher Asset Management was the stock’s leading stakeholder in Q2, owning Meta Platforms, Inc. shares worth over $1.8 billion. The fund’s position in the stock increased by 4% from Q1 2022.

4. Amazon.com, Inc. (NASDAQ:AMZN)

D E Shaw’s stake value: $569 million

Percentage of D E Shaw’s Portfolio: 0.66%

Number of Hedge Fund Holders: 252

With $386 billion in net sales and an expected $578 billion in physical/digital online gross product volume in 2021, Amazon.com, Inc. is a significant online retailer and one of the highest-grossing e-commerce aggregators. Retail sales account for over 80% of total revenue, followed by Amazon Web Services’ cloud computing, storage, database, and other products (10%-15%). During Q2 2022, D E Shaw boosted its stake in the company by 1204%. The fund’s total stake in the company amounted to roughly $569 million, which represented 0.66% of its 13F portfolio.

Tom Forte, analyst at DA Davidson maintains his buy stance of Amazon.com, Inc. with a price target of $151, after the company recently disclosed the buyout of Cloostermans, a warehouse automation firm. The analyst noted that Amazon.com, Inc. is making a “concerted effort” into the robotics / automation business with this purchase, as well as with the iRobot (IRBT) acquisition announced last month.

At the end of Q2 2022, 252 hedge funds tracked by Insider Monkey owned stakes in Amazon.com, Inc.. Fisher Asset Management was the stock’s leading stakeholder in Q2, owning Amazon.com, Inc. shares worth over $5.1 billion. The fund’s position in the stock increased by 1959% from Q1 2022.

3. Alphabet Inc. (NASDAQ:GOOG)

D E Shaw’s stake value: $612 million

Percentage of D E Shaw’s Portfolio: 0.71%

Number of Hedge Fund Holders: 153

Alphabet Inc. is a holding company. Google, the internet media powerhouse, is a completely owned subsidiary of the company. Google contributes 99% to Alphabet Inc.’s (NASDAQ:GOOG) income, with internet advertising accounting for more than 85% of the total revenue. During Q2 2022, D E Shaw increased its stake in the company by 70%. The fund’s total stake in the company amounted to roughly $612 million, which represented 0.71% of its 13F portfolio.

Last month, Ivan Feinseth analyst at Tigress Financial, increased his price target on Alphabet Inc. to $186 from $183 while keeping a strong buy rating on the stock. The analyst highlighted the resiliency of Alphabet Inc. core business in Cloud and Search. The analyst noted that the company’s current investment in Artificial Intelligence continues to drive “increasingly focused and helpful experiences for users and businesses.”

At the end of Q2 2022, 153 hedge funds tracked by Insider Monkey owned stakes in Alphabet Inc.. TCI Fund Management was the stock’s leading stakeholder in Q2, owning Alphabet Inc. shares worth over $5.4 billion. The fund’s position in the stock increased by 5% from Q1 2022.

2. Microsoft Corporation (NASDAQ:MSFT)

D E Shaw’s stake value: $1.04 billion

Percentage of D E Shaw’s Portfolio: 1.22%

Number of Hedge Fund Holders: 258

Microsoft Corporation produces and licences software for consumers and businesses. Microsoft is widely recognized for its Windows operating systems and Office productivity suite. The business is divided into three major divisions of similar size: productivity and business processes, intelligence cloud, and more personal computing. During Q2 2022, D E Shaw decreased its stake in the company by 11%. The fund’s total stake in the company amounted to roughly $1.04 billion, which represented 1.22% of its 13F portfolio.

Analyst John DiFucci of Guggenheim recently commenced coverage of Microsoft Corporation with a neutral rating and a $292 price target. While DiFucci believes Microsoft Corporation can grow revenue and free cash flow in the mid-teens percentage points on average, led by above-consensus numbers in Azure and Office Commercial 365, he anticipates continued declines in Windows that the analyst believes are “not fully reflected in consensus estimates.” Given that Windows still accounts for about a quarter of Microsoft’s profits, DiFucci sees a balanced risk/reward at current prices.

At the end of Q2 2022, 258 hedge funds tracked by Insider Monkey owned stakes in Microsoft Corporation. Fisher Asset Management was the stock’s leading stakeholder in Q2, owning Microsoft Corporation shares worth over $7.3 billion. The fund’s position in the stock increased by 3% from Q1 2022.

1. Apple Inc. (NASDAQ:AAPL)

D E Shaw’s stake value: $1.1 billion

Percentage of D E Shaw’s Portfolio: 1.3%

Number of Hedge Fund Holders: 128

Apple Inc. creates, manufactures, and distributes smartphones, personal computers, tablets, wearables, and accessories, in addition to selling a variety of accessories. Additionally, the business provides payment, digital content, cloud, and advertising services.

According to Reuters, Apple Inc. intends to deploy an improved version of TSMC’s latest chip in iPhones and Macbooks next year. The A17 mobile CPU, currently in development, will be mass-produced utilizing TSMC’s N3E chipmaking technology, with availability expected in the second half of next year. During Q2 2022, D E Shaw decreased its stake in the company by 9%. The fund’s total stake in the company amounted to roughly $1.11 billion, which represented 1.3% of its 13F portfolio.

Here’s what Wedgewood Partners said about Apple Inc. in its Q2 2022 investor letter:

“Apple grew revenues +9%, driven by +17% growth in the Services segment. While iPhone revenues grew a modest +5%, it was on an exceptional year ago comparison of +66%. iPhone continues to capture most industry smartphone profits by focusing on high-end price tiers. Apple is taking nearly two-thirds of the revenue share in the premium ($400 and above) smartphone segment. Further, most of the growth was driven by expansion in the “ultra-premium” price tier of $1000 or more per unit.[1] As we have highlighted in the past, Apple’s relentless focus on the development and integration between hardware (especially integrated circuits) and software continues to add significant value for customers of its products and services. We expect this favorable competitive dynamic to continue for the foreseeable future.”

At the end of Q2 2022, 128 hedge funds tracked by Insider Monkey owned stakes in Apple Inc.. Berkshire Hathaway was the stock’s leading stakeholder in Q2, owning Apple Inc. shares worth over $122 billion. The fund’s position in the stock increased by 1% from Q1 2022.

You can also take a look at 10 High-Yield Dividend Stocks for Stable Income and 10 Dividend Stocks to Buy According to Billionaire Cliff Asness.

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