As tech stocks recovered from last year's vicious bear market, artificial intelligence bellwethers like Nvidia, Meta Platforms and Alphabet surged. But the Federal Reserve-driven pullback has some investors wondering: Is the great AI boom over?
Not according to the latest list of new buys by the best mutual funds. In this month's report, top money managers eagerly scooped up shares in Nvidia stock, Meta and Google parent Alphabet.
Today's fresh rebound in these AI leaders reinforces that, with META just jumping past a 312.87 buy point and Nvidia stock closing back above its 50-day moving average. Google stock also popped in above-average and rising volume.
Like with the initial dot-com boom over two decades ago, trends as fundamentally transformative as AI go through waves, but the underlying shifts are undeniable and tectonic in scale. As a result, the best mutual funds continue to place massive bets on these and other AI stocks across a range of industries.
With Nvidia well established as an AI powerhouse, the best-performing portfolio managers invested over $1.6 billion in Nvidia stock. They also scooped up an estimated $452 million in Meta stock and $450 million worth of shares in Google stock.
Further confirming particular demand for these three AI stocks, none of the other members of the Magnificient Seven — Apple, Amazon, Microsoft and Tesla — made this list.
| Company | Symbol | $ Amt Invested (mil) | Comp Rating | EPS Rating | RS Rating | SMR Rating |
|---|---|---|---|---|---|---|
| Nvidia | 1,612 | 99 | 93 | 99 | A | |
| Meta Platforms | 452 | 98 | 86 | 98 | B | |
| Alphabet | 450 | 98 | 90 | 94 | A |
See all stocks on the list of new buys by top funds.
AI Tentacles Reach Far Beyond Meta, Google And Nvidia Stock
While the performance of AI stocks will ebb and flow, the wave of artificial intelligence across virtually all sectors shows no signs of abating anytime soon. Thus, the best mutual funds continue to invest with an eye on long-term adoption and expansion of AI technologies.
Dot-com pioneers Cisco Systems and Oracle continue to innovate in the AI era. Building off its network expertise, Cisco applies machine learning to remote work, cybersecurity, analytics, data centers and more. Oracle also delivers a comprehensive AI portfolio.
Also on the list of new buys by top funds, SuperMicro Computer is well positioned to benefit from the boom in spending on data center hardware to support artificial intelligence. Meanwhile, Mobileye Global taps machine learning and driver-assist technologies to pave the road for more autonomous driving.
Even Domino's Pizza wants a slice of the AI pie. Domino's has just teamed up with Microsoft to roll out the next generation of pizza ordering and store operations with generative AI and cloud computing.
Urban Outfitters is also dressed for AI success, pursuing AI-based merchandising.
Bottom Line: The reason the best mutual funds have funneled so much money into Meta stock, Alphabet, Nvidia and other so-called AI stocks is that the applications of artificial intelligence are becoming increasingly ubiquitous in all aspects of our daily lives.
Today, only people of a certain age will even remember the novelty of adding ".com" to everything. As artificial intelligence becomes inextricably woven into the fabric of, well, everything, talk of "AI stocks" will simply disappear into the background.
But as this seismic shift unfolds, the opportunities for investors will be huge.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
