Woodward Inc. (WWD): Billionaire Stan Druckenmiller Trims Holding

Woodward, Inc. (NASDAQ:WWD) is one of Billionaire Stan Druckenmiller’s 10 Small and Mid-Cap Stock Picks with Huge Upside Potential.

Woodward, Inc. (NASDAQ:WWD) has been a mainstay in the 13F portfolio of Duquesne Capital since many quarters. The fund first disclosed a stake in the company in the fourth quarter of 2023. This position comprised over 400,000 shares. In the following quarter, the fund upped this stake by over 130%, taking share ownership to 954,000 shares. Another 10% addition in the third quarter of 2024 increased this to over a million shares. After upping this position by 15% in the following quarter, the fund has trimmed the holding since then. Filings for the fourth quarter of 2025 show that the fund owned 590,000 shares in the firm, down 6% compared to filings for the third quarter of 2025.

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The smart money is currently backing Woodward, Inc. (NASDAQ:WWD) due to its unique position at the intersection of a recovering aerospace market and a massive global shift in energy infrastructure. Hedge funds are particularly bullish on Woodward’s Aerospace segment, which saw a 29% revenue surge in Q1 2026. A 50% year-over-year increase in commercial services has caught the eye of institutional investors. As global airline fleets age and utilization remains at record highs, Woodward’s proprietary control systems require constant, high-margin maintenance and parts. Hedge funds view Woodward as a safe haven defense play. With defense OEM sales up 23% in early 2026, the company is benefiting from smart defense orders and increased global military spending.

While we acknowledge the risk and potential of WWD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WWD and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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