Artificial intelligence has sparked a lovefest among the best mutual funds for AI powerhouses from Meta Platforms and Alphabet to Tesla, Broadcom, Adobe, Oracle and beyond.
META stock, TSLA, GOOGL, ORCL and AVGO have all generated a spot on this month's list of new buys by the best mutual funds. The tsunami of interest flooding into machine learning, generative AI et al has money pouring into a slew of so-called AI stocks to watch.
While Microsoft failed to make this month's list, the AI giant remains committed to its merger with Activision Blizzard, which did. After top money managers invested $1.5 billion in MSFT stock in the July report, the best mutual funds shoveled an estimated $808 million into ATVI stock in this month's screen.
Meta Stock Leads Mega Bets On AI Boom
Riding the AI wave, the best mutual funds plowed over $10 billion into META stock. Cybersecurity leader Palo Alto Networks, which works with industry giants like Google and Nvidia to safeguard the cloud in an AI world, raked in roughly $6.8 billion.
Leading money managers also ramped up their investments in Tesla stock. Last month, the EV pioneer charged onto the list, taking in nearly $72 million. The latest report showed a sharp spike in inflows to approximately $1.4 billion.
With generative AI generating a battle with Microsoft for supremacy in artificial intelligence, Alphabet took in $827 million from the best mutual funds.
Click here to see the full list of new buys by top funds.
| Company | Symbol | $ Amt Invested (mil) | Comp Rating | EPS Rating | RS Rating | Ind Group RS | SMR Rating |
|---|---|---|---|---|---|---|---|
| Meta Platforms | META | 10,123 | 99 | 80 | 98 | A+ | B |
| Palo Alto Networks | PANW | 6,781 | 99 | 98 | 94 | B+ | B |
| Tesla | TSLA | 1375 | 98 | 94 | 92 | A+ | A |
| Alphabet | GOOGL | 827 | 98 | 91 | 89 | A+ | A |
| Activision Blizzard | ATVI | 808 | 99 | 94 | 86 | A | A |
The Best Mutual Funds Focus On AI Stocks Across Range Of Industries
As reflected on the latest list of new buys by the best mutual funds, demand for leading AI stocks runs as deep as deep learning.
Companies as disparate as Palantir, Adobe and Workday all have tapped into the AI zeitgeist while sparking interest among leading money managers.
Buzz around artificial intelligence continues to stir interest in Palantir stock. In health care, Palantir customers possibly could use generative AI in applications such as drug discovery.
Just last month, Adobe expanded the availability of its generative AI tool to support text prompts in over 100 languages. On July 6, ADBE stock was featured as the IBD Stock Of The Day as the company took aims to monetize generative AI.
Workday has machine learning and AI technology deeply embedded in its finance and human resources platforms. Along with Palantir stock, Workday joins fellow enterprise software firms ServiceNow, Datadog, Salesforce and Monday.com on the list, all of which are on the list of new buys by top funds and have made substantial moves into artificial intelligence.
AI Technology Etched Into Semiconductors — And Minds Of Big Investors
Alongside Broadcom, this month's list of new buys by the best mutual funds includes a dozen names hailing from the semiconductor sector.
Advanced chips and the related equipment to make them are at the heart of artificial intelligence. From the metaverse from Meta to the chatbots and cloud services from Microsoft and Google, it's the advanced semiconductors from the likes of Broadcom, Rambus, On Semiconductor and Allegro MicroSystems that make AI possible.
Top-performing money managers also picked up shares in Monolithic Power Systems, which is on the IBD Long-Term Leaders watchlist.
In the chip equipment maker group, Applied Materials, KLA Axcelis Technologies and Onto Innovation lead the charge.
See Who Joins META Stock And TSLA On The List Of New Buys By The Best Mutual Funds
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
