In this article, we will list the top 5 stocks to buy in the D. E. Shaw stock portfolio. Please visit D. E. Shaw Stock Portfolio: Top 10 Stocks to Buy if you would like to see the extended list and the methodology behind it.
David E. Shaw of D.E. Shaw
5. Apple Inc. (NASDAQ:AAPL)
D. E. Shaw’s Stake: $1.4 Billion
Apple Inc. (NASDAQ:AAPL) has featured in the 13F portfolio of D. E. Shaw consistently since the fourth quarter of 2010, with two notable exceptions in the second quarter of 2012 and the second quarter of 2017. Since the third quarter of 2017, however, this holding, comprising 32 million shares then, has undergone massive changes. Filings for the fourth quarter of 2025 show that this position was only one of two prominent holdings in the D. E. Shaw portfolio that underwent minor trimming, with the fund decreasing the stake it held in Apple by 7% compared to filings for the third quarter of 2025.
Apple Inc. (NASDAQ:AAPL) remains a cornerstone of institutional portfolios and despite a year-to-date decline of roughly 8.5% and macro headwinds from geopolitical tensions, elite managers are doubling down on a recovery thesis centered on an iPhone 17 AI Super-Cycle. Analysts from Wedbush and Morgan Stanley maintain high-conviction price targets up to $350, betting that the integration of Gemini-powered AI features and a long-awaited Siri reboot in iOS 27 will trigger a massive hardware upgrade cycle among Apple’s 1.5 billion active users. Beyond hardware, the Services segment continues to act as a margin fortress, with revenue recently growing at a double-digit clip and approaching a $100 billion annual run rate.
4. Advanced Micro Devices, Inc. (NASDAQ:AMD)
D. E. Shaw’s Stake: $1.5 Billion
D. E. Shaw has registered a major buying activity around Advanced Micro Devices, Inc. (NASDAQ:AMD) stock in the fourth quarter of 2025. Although the semiconductor firm is a long-term holding of the hedge fund, first featuring the 13F portfolio way back at the end of 2010, in recent quarters, the fund had reduced it from 9.2 million shares in the fourth quarter of 2023 to just 350,000 shares in the third quarter of 2025. However, in the fourth quarter of 2025, the fund upped this by 1,917%, growing the shares owned to more than 7 million.
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Elite hedge funds often prefer the risk-reward profile of Advanced Micro Devices, Inc. (NASDAQ:AMD) over rivals like NVIDIA. In early 2026, AMD traded at roughly 11x sales, compared to Nvidia’s 23x sales. Many managers argue that if AMD captures just 15%-20% of the AI accelerator market, up from 9% in 2025, the stock could see a massive multiple re-rating toward NVIDIA levels. Another important factor investors keep in mind while investing in AMD is that while AI GPUs get the headlines, AMD’s CPUs continue to grab market share from chip powerhouse Intel in the traditional data center market. AMD management has signaled a path toward 50% server CPU revenue share by the end of 2026. The 6th Gen EPYC chips launching in late 2026 are expected to drive a 40% year-over-year surge in server revenue.
3. Palantir Technologies Inc. (NASDAQ:PLTR)
D. E. Shaw’s Stake: $1.7 Billion
Compared to other top stocks in the D. E. Shaw portfolio, Palantir Technologies Inc. (NASDAQ:PLTR) is a relatively recent addition. The hedge fund first disclosed a stake in the company back in the first quarter of 2021, merely months after the public debut of the software firm that is now making waves across the stock market. This holding comprised just 600,000 shares then, but has grown following the initial purchase. In the second quarter of 2023, D. E. Shaw owned nearly 30 million in the company. The position has been reduced steadily following this high. Filings for the fourth quarter of 2025 that the hedge fund owned 9.7 million shares in the company, up 6% compared to filings for the previous quarter.
Palantir Technologies Inc. (NASDAQ:PLTR) has become one of the most polarizing yet heavily accumulated stocks in the hedge fund world. Hedge funds seem to be pivoting their thesis from Palantir as a government contractor to a commercial powerhouse. In the fourth quarter of 2025, US commercial revenue for the firm skyrocketed 137% year-over-year. Palantir’s Artificial Intelligence Platform has moved from experimental bootcamps to full-scale production. Funds are betting on management’s 2026 guidance, which calls for US commercial revenue to exceed $3.14 billion, a growth rate of at least 115%.
2. Microsoft Corporation (NASDAQ:MSFT)
D. E. Shaw’s Stake: $3.3 Billion
D. E. Shaw has held a bullish view on Microsoft Corporation (NASDAQ:MSFT) since the fourth quarter of 2010. Back then, the fund owned a stake in the tech giant comprising close to 10 million shares. Apart from a few minor exceptions, this stock has consistently featured in the 13F portfolio of the fund. Filings for the fourth quarter of 2025 show that D. E. Shaw held over 6.8 million shares in the company, down close to 8% compared to filings for the previous quarter. The Microsoft holding represents nearly 1.82% of the 13F portfolio of the elite hedge fund and is the third largest stock position of the fund.
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One of the metrics most cited by institutional analysts for their bullish views on Microsoft Corporation (NASDAQ:MSFT) stock is the Commercial Remaining Performance Obligation. Microsoft entered 2026 with $625 billion in commercial backlog. This represents a safety net of future revenue. For long-term funds, the visibility provides a low-risk profile even if the broader economy slows down. Another long-term catalyst for the shares is AI agents. While 2025 was the year of chatbots, 2026 is the year of AI Agents. Following an internal reorganization in March 2026, Microsoft has integrated AI Agents deeper into Word, Excel, and Power Automate. These autonomous agents, which can perform complex tasks without human intervention, will allow Microsoft to raise its Average Revenue Per User beyond the standard $30 Copilot fee.
1. NVIDIA Corporation (NASDAQ:NVDA)
D. E. Shaw’s Stake: $4.3 Billion
D. E. Shaw is among a handful of elite money managers who have been bullish on NVIDIA Corporation (NASDAQ:NVDA) since before it was an AI powerhouse. The fund has owned a stake in the company since late 2010. Back then, this position comprised 8.7 million shares. D. E. Shaw grew this to over 156 million shares in the second quarter of 2019. Since then, the holding has been trimmed. Filings for the fourth quarter of 2025 show that D. E. Shaw owns more than 23 million shares in the company, down over 8% compared to filings for the previous quarter. This is the first time in four quarters that the fund has trimmed the stake, having added to it significantly in the previous three quarters.
NVIDIA Corporation (NASDAQ:NVDA) remains one of the most prominent stock picks of elite investors, featuring heavily in the portfolios of the hedge fund managers with the highest returns in the past few decades. Several reasons explain this bullish view. In March 2026, NVIDIA CEO Jensen Huang updated the company’s long-term revenue opportunity to $1 trillion through 2027, a significant jump from previous estimates. Hedge funds have started moving away from viewing NVIDIA as a chip maker and instead value it as an integrated AI platform now. NVIDIA’s networking segment is growing nearly as fast as its compute segment. Funds are betting that the system-level integration is what will sustain 75%+ gross margins.
While we acknowledge the potential of NVDA 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 NVDA and that has 100x upside potential, check out our report about the cheapest AI stock.
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