After a long absence, Tesla has zoomed back onto the list of new buys by the best mutual funds. As a strong uptrend kicks off the second half of the year, Tesla stock joins Microsoft, Axon Enterprise, Broadcom, Oracle and a slew of other tech and growth stocks.
Showing support for Microsoft's aggressive push into artificial intelligence through its big bet on OpenAI, top money managers poured an estimated $1.5 billion into MSFT stock. Axon stock was the only other member of the billion-dollar club, taking in over $1.1 billion. Broadcom ($296 million), Oracle ($158 million) and Adobe ($131 million) each had inflows over $100 million.
In a sign that institutional investors expect the electric vehicle pioneer to keep charging higher, the best mutual funds scooped up nearly $72 million worth of shares in Tesla stock.
Click here to see the full list of new buys by top funds.
AVGO Stock Leads Semiconductor Stocks In Demand
In Stock Checkup, the fabless semiconductor group ranks an impressive No. 6 out of the 197 industries IBD tracks. With a 97 Composite Rating, AVGO stock ranks among the leaders in the group.
Rambus, Allegro MicroSystems and Monolithic Power Systems all join Broadcom in the top 3% of stocks in terms of key stock-picking factors. Each also earns a spot on the list of new buys by the best mutual funds.
Within the broad semiconductor sector, six stocks in the chip equipment group, including Applied Materials and Lam Research, also make that list. Axcelis Technologies, Photronics, KLA and Onto Innovation have also etched their names on the screen. The industry group ranks a strong No. 20 out of 197.
The best mutual funds have also placed bets on Taiwan Semiconductor, On Semiconductor and Microchip from the No. 50-ranked semiconductor manufacturing industry group.
- Semiconductor Stocks In Or Near A Buy Zone
With the semiconductor sector showing strength, many chip stocks, such as AMAT stock and AVGO, have climbed out of buy range. But those in or near a buy zone include TSM, MCHP, ALGM, MPWR and PLAB.
Building Sector Fortifies Demand Among The Best Mutual Funds
Browsing this stock screen of new buys by the best mutual funds, the abundance of building stocks stands out, with 35 names from the sector earning a spot.
Eight homebuilders make the cut, including KB Home, Taylor Morrison Home, Toll Brothers, NVR, Meritage Homes and Dream Finders Homes. The Building-Residential/Commercial group ranks eleventh out of 197 groups.
Atkore, Builders FirstSource, TopBuild and Emcor have also nailed down demand among these top money managers.
- Building Stocks In Or Near A Buy Zone
As with Tesla stock, AVGO, AMAT and others in demand among the best mutual funds, several building stocks are now extended. Those still in or near buy range include ATKR, MTH and NVR. Emcor, Comfort Systems, PGT Innovators and others also fit that bill.
MSFT Stock, Oracle Spearhead Software Sector
From MongoDB and DoubleVerify to Palantir to Palo Alto Networks, 22 other companies join Microsoft stock and Oracle from the broad software sector.
ServiceNow, Workday, HubSpot, Datadog and Palo Alto Networks stock peer Fortinet have all secured a place on the list.
Software currently ranks No. 11 out of the 33 sectors IBD tracks.
- Software Stocks In Or Near A Buy Zone
Joining Tesla stock in the extended category, Microsoft, Oracle, MongoDB and other software names have already made impressive moves. Software stocks to watch that remain in or near a buy zone include Datadog, Workday, Dynatrace and PDF Solutions.
Click here to see the full list of new buys by the best mutual funds.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
