Key Points
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Trump’s accounts made more than 3,600 trades in the first quarter, according to a recent filing from the U.S. Office of Government Ethics.
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Palantir is arguably the enterprise standard in artificial intelligence because of its unique ontology-based software architecture.
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Western Digital is the market leader in hard disk drives, a market projected to grow at 22% annually through 2030.
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President Trump’s investment accounts made 3,642 stock trades during the first quarter, according to a recent public disclosure from the U.S. Office of Government Ethics.
Importantly, the accounts are managed by third-party institutions, meaning the president himself was not responsible for the decision to buy or sell any security. Nevertheless, it’s intriguing to see where investment managers are allocating Trump’s fortune.
In the first quarter, he sold between $854,000 and $4.6 million in Palantir Technologies (NASDAQ: PLTR). He also purchased between $45,000 and $150,000 in Western Digital (NASDAQ: WDC), a stock up 2,100% since January 2023.
Here’s what investors should know about Palantir and Western Digital.
Palantir Technologies: The stock President Trump’s accounts sold in the first quarter
Palantir develops data integration and analytics software for commercial organizations and government agencies. The company also builds an adjunct artificial intelligence platform called AIP that securely connects business data to large language models, allowing users to engage data and automate workflows in natural language.
Palantir has differentiated itself with unique software. Analytics tools usually focus on data visualizations and spreadsheets, but Palantir built its software around a decision-making framework called an ontology. Think of the ontology as an application layer that connects digital data to real-world objects, creating an interface that is more conducive to decision-making than spreadsheets.
In a recent CNBC interview, CEO Alex Karp said his talks with corporate executives have revealed discomfort with products from AI labs such as Anthropic because of concerns about data security. He went on to say that ontology-based software is the only path to creating real operational value with AI without exposing sensitive data. Palantir’s ontology “takes a large language model and makes it safe, useful, and precise,” he explained.
Palantir reported impressive financial results in the first quarter. Revenue increased 85% to $1.6 billion, the 11th consecutive acceleration, and non-GAAP earnings soared 153% to $0.33 per diluted share. CEO Alex Karp said, “Our financial results now demonstrate a level of strength that dwarfs the performance of essentially every software company in history at this scale.”
Palantir stock is down 38% from its high, but shares still trade at 140 times adjusted earnings. That is quite expensive even when Wall Street expects adjusted earnings to increase at 57% annually through 2027. Risk-tolerant investors can buy a few shares today, but I would keep the position relatively small.
Western Digital: The stock Trump’s accounts bought in the first quarter
Western Digital designs and manufactures data storage devices across three end markets: data centers, personal computers, and other consumer devices. The company is entirely focused on hard disk drives (HDDs), which are slower and less power efficient than solid state drives (SSDs), but also about six times cheaper per unit of stored data.
SSDs and HDDs support AI workloads in different ways. SSDs are better when performance and durability are most important; they are commonly used to store data that is accessed frequently, such as training data and models loaded by AI clusters. HDDs are better when cost efficiency is most important; they are used to store data that is accessed infrequently.
Last year, Western Digital led the industry in HDD shipments with 47% market share. The closest competitor was Seagate, with 42% market share, and Toshiba ranked a distant third with 11% market share. Data center HDD sales are projected to increase at 22% annually through 2028, according to Western Digital.
Western Digital reported solid financial results in the third quarter of fiscal 2026 (ended in April). Revenue rose 45% to $3.3 billion, and non-GAAP earnings increased 97% to $2.72 per diluted share. “The demand drivers are clear: Virtually every AI workload — from training to inference, agentic AI to physical AI — creates data that is stored persistently and cost-efficiently on HDDs,” said CEO Irving Tan.
Historically, the HDD market has been highly cyclical. But Amit Daryanani at Evercore says this time may be different because Western Digital and Seagate are “absolutely committed to not adding capacity.” With that strategy, the companies hope to avoid the post-boom supply glut that has traditionally driven prices lower.
Wall Street estimates that Western Digital’s adjusted earnings will increase at 72% annually through fiscal 2028 (ends in June). That makes the current valuation of 66 times earnings look relatively cheap. Investors should consider buying a small position in Western Digital.
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Trevor Jennewine has positions in Palantir Technologies. The Motley Fool has positions in and recommends Evercore, Palantir Technologies, and Western Digital. The Motley Fool has a disclosure policy.
