In this month's list of new buys by the best mutual funds these savvy investors scooped up an impressive $7.7 billion worth of shares in Palantir Technologies. That comes as Palantir stock soared to a record high on third-quarter earnings. But even that strong demand is dwarfed by the enormous sums leading money managers poured into another AI giant not named Nvidia — rival chip designer Broadcom.
Best Mutual Funds Bet Big On Broadcom, Palantir
Showing breadth across quite disparate industry groups, the best mutual funds invested at least $500 million in each of eight companies on this stock screen.
Workwear giant Cintas joined AI-infused enterprise software firm Palantir near the top of the list. Both firms saw capital inflows well above $7 billion.
But Broadcom — featured in the latest IBD Stock Analysis column — starred as the elephant in this room. And it wasn't just this month. The AI semiconductor leader also made this screen in October as Nvidia stock was again AWOL. (Nvidia has not made this list since leading it in June.)
It's worth noting that Palantir has made this list every month this year, except October and June.
This month, the best mutual funds also added shares of Walmart to their shopping carts, pouring $755 million into the retailer. Shoemaker Deckers Outdoor ($1.95 billion), mobile app developer AppLovin ($938 million), and defense stock Howmet Aerospace ($828 million) also secured a spot on this list.
| Company | Symbol | $ Amt Invested (mil) | Comp Rating |
|---|---|---|---|
| Broadcom | AVGO | $17,235 | 97 |
| Palantir Technologies | PLTR | 7,676 | 99 |
| Cintas | CTAS | 7,242 | 93 |
| Deckers Outdoor | DECK | 1,949 | 90 |
| AppLovin | APP | 938 | 99 |
| Howmet Aerospace | HWM | 828 | 99 |
| Walmart | WMT | 755 | 86 |
| Tetra Tech | TTEK | 569 | 85 |
The links below highlight just a portion of this month's new buys and sells by top funds.
Click here to see all the stocks on the list.
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Palantir Rockets As Broadcom Targets Breakout
As tech stocks rally on the results of Election 2024, Palantir isn't the only company that soared on that news plus earnings. AppLovin blasted higher after crushing Q3 estimates and continues to skyrocket. It reversed higher from Monday's lows to close down but near the top of the day's price range. The enterprise software firm is set to join the Nasdaq 100 on Monday, Nov. 18 before the open.
Deckers, which reported last month, has laced up a 171.57 buy point in a third-stage cup with handle. The Hoka owner punched past that entry on Friday and remains in buy range. And both Walmart and Cintas have recently notched record highs.
Meanwhile, Broadcom stock teased a breakout past a 185.16 entry in a consolidation pattern last week. The stock fell Monday, but remains above its 21-day line. Keep in mind that it is a late-stage base, as is the case for Nvidia. Such patterns can still work — especially in a strong market — but they entail more risk.
On Monday, Nvidia came off last week's all-time high, but still trades near the top of its buy range. Two Wall Street analysts view the AI giant as a "must-own," "once-in-a-lifetime opportunity."
Investors should note that Nvidia reports earnings on Nov. 20. How the AI leader fares and how Wall Street reacts could certainly impact Broadcom, which reports on Dec. 5.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
