Nvidia (NVDA 2.47%) and Chipotle Mexican Grill (CMG 0.43%) are top companies. Nvidia leads in the AI industry, while Chipotle is a strong brand in restaurants. Both recently split their stocks due to rising prices.

Despite their strengths, some hedge fund managers sold Nvidia shares recently while buying Chipotle:

  • Cliff Asness (AQR): sold 1.3M Nvidia shares, bought 673K Chipotle shares.
  • Israel Englander (Millennium): sold 672K Nvidia shares, bought 3.5M Chipotle shares.
  • Steven Cohen (Point72): sold 409K Nvidia shares, bought 1.4M Chipotle shares.
  • Steven Schonfeld (Schonfeld): sold 370K Nvidia shares, bought 131K Chipotle shares.

However, these trades shouldn’t make you think Nvidia isn’t a good investment; these managers still hold significant Nvidia shares.

1. Nvidia

Nvidia powers the AI boom with its GPUs, holding 80% of the AI accelerator market. Its GPUs excel in performance and software support.

Bank of America analyst Vivek Arya raised Nvidia’s price target to $190, predicting steady revenue growth from AI hardware. For Q2 2025, Nvidia’s revenue was $30 billion, up 122%, mainly from AI demand.

Nvidia’s new GPU, Blackwell, launches soon, with demand already high. Currently, Nvidia’s stock is trading at a reasonable valuation compared to its future earnings growth.

2. Chipotle Mexican Grill

Chipotle operates over 3,500 fast-casual restaurants, focusing on “food with integrity.” Their strong brand loyalty and quality ingredients result in above-average sales and traffic.

In Q2, Chipotle reported an 18% revenue increase to $3 billion. Hedge funds were interested in buying Chipotle shares, which now have a more favorable valuation compared to previous months.

Despite being expensive, potential investors should consider waiting for a slight drop before buying shares.