Top stock picks the 'smart money' has been buying, Morningstar analysis

Volatility tied to the Iran conflict has shaken markets, but top large-cap fund managers have been reshuffling holdings rather than waiting it out. Morningstar examined portfolios from managers holding 50 or fewer stocks and tracked changes over the past three months to identify the ten names bought most since the war began.

Western Digital topped the list, swept up in bullish sentiment for memory-chip makers; Morningstar quoted Eric Compton saying, "We expect overall HDD industry revenue will grow at a 30%-plus average rate over the next several years, as prices rise and the amount of storage shipped increases." Taiwan Semiconductor was highlighted for long-term growth from integrated systems and AI demand and was seen as likely about 5% undervalued.

GE Aerospace could benefit from what Morningstar described as a near doubling of the global fleet by 2042. Netflix was cited for its "superiority" in streaming and an expected growth trajectory, though Morningstar flagged it could be about 11% overvalued.

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