By Trevor Jennewine
Publication Date: 2026-03-04 00:00:00
Key Points
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Nvidia is the market leader in data center GPUs and networking, while Sandisk ranks as the fifth-largest supplier of NAND flash memory.
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GPUs and networking are the most expensive hardware components of an AI data center, which means Nvidia has a larger addressable market.
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Sandisk is growing rapidly primarily because a supply shortage has driven memory chip prices higher, but Nvidia has a more durable economic moat.
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In the past year, Nvidia (NASDAQ: NVDA) stock has increased 46%, while Sandisk (NASDAQ: SNDK) shares have added 1,220%. But two hedge fund billionaires bought Nvidia and sold Sandisk in the fourth quarter.
- Cliff Asness at AQR Capital Management bought 3.9 million shares of Nvidia, increasing his stake by 18%. He also sold 318,600 shares of Sandisk, reducing his stake by 22%. Nvidia is now the largest position in his portfolio. Sandisk does not rank among the top 50.
- Steven Schonfeld at Schonfeld Strategic Advisors bought 2 million shares of Nvidia, more than tripling his stake. He also sold 41,800 shares of Sandisk, reducing his stake by 27%. Nvidia is now the third-largest position in his portfolio. Sandisk does not rank among the top 50.
Asness and Schonfeld handily beat the S&P 500 (SNPINDEX: ^GSPC) during that last three years, which makes their portfolios a good place to search for inspiration. Both fund managers clearly favor Nvidia over Sandisk. Here’s why I agree.
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