With Nvidia, Microsoft, Meta Platforms and the other Magnificent Seven stocks now accounting for around half of the total market capitalization of the Nasdaq, it's no wonder these titans of tech remain the wonders of Wall Street. But this month's list of new buys by the best mutual funds reveals a different set of seven stocks showing magnificent demand.
Microsoft, Meta and Nvidia stock all make this screen that showcases companies garnering exceptional institutional demand. The list highlights seven stocks with inflows of at least $1 billion from the best mutual funds.
In addition to these three Magnificent Seven stocks, Uber Technologies, Fair Isaac, Arista Networks and Fiserv also make the billion-dollar club.
Without exception, Nvdia, Uber, Microsoft, Meta and the other members of this elite club now trade at or near their all-time highs.
Shares of Nvida stock, for example, just shot past the 700 mark, while Microsoft once again adds to its ascent. Meta stock continues to trade in a tight range — very health action following a more than 20% gain on earnings.
Alphabet just missed getting an invitation to the billion-dollar club. These leading money managers invested a total of $950 million into the Google parent's stock. Like Nvidia, Meta and Microsoft, Google stock has its eyes on its own record highs.
Uber Stock Leads New Buys By The Best Mutual Funds
| Company | Symbol | Amount invested (billions) | Comp Rating | EPS Rating | RS Rating | SMR Rating | A/D Rating |
|---|---|---|---|---|---|---|---|
| Uber Technologies | $12.3 | 97 | 82 | 96 | B | A | |
| Microsoft | 5.5 | 97 | 97 | 89 | A | B | |
| Nvidia | 2.4 | 99 | 99 | 98 | A | B+ | |
| Meta Platforms | 1.4 | 99 | 96 | 97 | A | B | |
| Fair Isaac | 1.4 | 94 | 95 | 96 | n/a | B | |
| Arista Networks | 1.2 | 99 | 98 | 96 | A | A- | |
| Fiserv | 1.1 | 86 | 95 | 82 | A | D+ |
The links below highlight a portion of this month's new buys and sells by top funds.
Click here to see all the stocks on the list.
AI Drives Demand For These 2 Sectors
Spreading like water into every crevice of every industry, artificial intelligence continues to spur demand among the best mutual funds. In addition to the Magnificent Seven stocks, Uber and others mentioned earlier, savvy money managers once again reveal a keen interest into three particular industries: enterprise software, cybersecurity and semiconductors.
Led by ServiceNow, Salesforce.com, Dynatrace and Palantir Technologies, the enterprise software group accounts for 16 stocks on the list of new buys by the best mutual funds.
UiPath, Shopify, Clouldflare, Monday.com and DocuSign also hail from this group.
As AI and cloud computing raise concerns around network security, four cybersecurity firms make this screen: CrowdStrike, Palo Alto Networks, CyberArk Software and Zscaler.
Including Nvidia, six stocks from the semiconductor sector have also etched their names on this list of new buys by the best mutual funds. This grouping includes ASML, Broadcom and Rambus.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
