Nvidia (NVDA 0.78%) and Chipotle Mexican Grill (CMG 0.90%) are both excellent companies. Nvidia plays a key role in the AI sector, while Chipotle is well-respected in the restaurant industry. Both recently split their stocks to manage high prices.

Despite their strengths, some billionaire hedge fund managers sold shares of Nvidia while buying shares of 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 132K Chipotle shares.

These trades shouldn’t discourage potential Nvidia investors, as the fund managers still hold significant shares in it. For instance, Nvidia remains AQR’s largest investment.

1. Nvidia

Nvidia leads in the AI market with its GPUs, holding an 80% share in AI accelerators. The company excels thanks to its high-performance GPUs and robust software tools.

Bank of America raised Nvidia’s 12-month price target to $190, expecting a 75% market share in AI accelerators by the decade’s end and continued 20% annual revenue growth in data centers.

In Q2 2025, Nvidia reported a 122% increase in revenue to $30B, driven by AI hardware demand, with non-GAAP earnings soaring 152% to $0.68 per share.

Investors anticipate growth, especially with the upcoming launch of its Blackwell GPU, which has a year-long backlog of orders.

The stock’s current P/E ratio is 64.7 with a projected 38% earnings growth over three years, down from an average of 66.4 and 34%, showing improved value for long-term investors.

2. Chipotle Mexican Grill

Chipotle runs over 3,500 fast-casual restaurants across North America and Europe, known for its commitment to “food with integrity” and fresh ingredients. This has fostered strong customer loyalty and high same-store sales.

The company focuses on efficiency and recently enhanced training and technology to improve customer service, leading to strong performance in Q2, with an 18% revenue increase to $3B and a 36% rise in non-GAAP net income to $0.34 per share.

The hedge fund managers mentioned were buying Chipotle shares in Q2 while they traded at a P/E of 65.9, with earnings projected to grow by 21% annually. Now, they trade at 58.2 times earnings, with a similar growth outlook.

However, Chipotle’s shares are still considered expensive, with a current PEG ratio of 2.6. Investors might want to wait for a price dip before purchasing.