Ken Griffin ranks 33rd on the Bloomberg Billionaires Index with a net worth exceeding $42 billion. He is also the founder and CEO of Citadel, the most profitable hedge fund in history as measured by net gains since inception. Those bona fides make Griffin a good source of inspiration, and retail investors can follow along with his trades by reviewing quarterly Forms 13F.
Interestingly, while Nvidia (NASDAQ: NVDA) and Taiwan Semiconductor (NYSE: TSM) are both positioned to benefit from demand for artificial intelligence (AI) infrastructure, Griffin bought one stock and sold the other in the third quarter.
Those trades suggest Griffin's confidence in Nvidia increased substantially during the third quarter, while his confidence in Taiwan Semiconductor may have waned slightly. But the third quarter ended in September, so let's take a closer look at where both AI stocks stand today.
Nvidia: The stock Ken Griffin bought
Nvidia is best known for its graphics processing units (GPUs), chips that can perform technical calculations more quickly and efficiently than central processing units (CPUs). GPUs are used to accelerate complex data center workloads like artificial intelligence (AI), and Nvidia GPUs are the industry standard. The company has more than 95% market share in AI accelerators, according to Vijay Rakesh at Mizuho.
What truly sets Nvidia apart is vertical integration that spans GPUs, CPUs, and networking equipment, such that the company effectively builds entire data centers. Also, its proprietary CUDA software streamlines AI application development across domains ranging from robotics to drug discovery. That approach lets Nvidia develop systems with a superior total cost of ownership, according to CEO Jensen Huang.
Nvidia delivered a phenomenal financial report for the third quarter of fiscal 2025, which ended in October 2024, beating estimates on the top and bottom lines. Revenue increased 94% to $35 billion as data center sales surged 112%, and automotive and robotics sales climbed 72%. Meanwhile, non-GAAP earnings more than doubled to reach $0.81 per diluted share.
Looking ahead, Wall Street expects Nvidia's adjusted earnings to increase at 48% annually through fiscal 2026, which ends in January 2026. That makes the current valuation of 55 times adjusted earnings look surprisingly reasonable. Patient investors should consider buying a position in this stock today.