IBD Leaderboard names Nvidia, Google parent company Alphabet, and Garmin are names atop the Stocks That Funds Are Buying screen. Nvidia stock appears to be back to its former glory and dominates, once again.
The IBD Screen Of The Day name, Nvidia, is near a buy point, while Google stock is ripe for the picking in a buy zone. Garmin is climbing in a handle of a base. Nvidia struck a deal with the U.S. government allowing it a license to sell a product in China.
Nvidia Stock Flirts With Buy Point
The artificial intelligence leader, along with Advanced Micro Devices, reached a deal with President Donald Trump to give the U.S. government 15% of sales in exchange for export licenses for the Chinese market. The agreement allows Nvidia to sell its H20 chips to China.
Nvidia stock dipped 0.3% Monday as it hovered around its all-time high of 183.88, reached last Thursday.
The IBD 50 and IBD Big Cap 20 name is near the 183.30 buy point of a bullish three-weeks-tight pattern. The pattern is best used to add to a current position, but can also be seen as an early entry.
Mutual funds have increased shares for eight straight quarters, according to IBD Stock Checkup. As of June, 8,766 funds owned shares, up from 8,696 in March. And seven IBD Mutual Fund Index names hold Nvidia stock, including Fidelity Contrafund, with a 93.51 million share position.
Its 1.9 up/down volume ratio shows positive demand over the last 50 days.
Nvidia stock has outperformed 94% of stocks in Investor's Business Daily's database and has climbed 35% so far this year. Its relative strength line is near a high.
Analysts see Nvidia's July-ended quarterly earnings rising 47% to $1 per share with sales of $45.8 billion, or a 52% jump. The artificial intelligence leader reports its fiscal second-quarter results on Aug. 27.
Fiscal year 2026 profit forecasts have recently been revised up to $4.37 per share, or 46% growth. Further, fiscal 2027 earnings are expected to rise 35% to $5.89 per share.
Nvidia stock holds a top-notch 99 IBD Composite and Earnings Per Share Ratings. Also, it was the first stock to hit the $4 trillion market capitalization level.
Google Stock Is In A Buy Zone
IBD SwingTrader holding, Alphabet, is in the 5% buy range up to 207.85 from a cup-with-handle entry of 197.95, according to MarketSurge pattern recognition. Google stock is trading just over 200 psychological price level.
The recent IBD Stock Of The Day has gained around 43% from the bottom of the base, reached in early April. Despite the recent climb, shares have gained around 6% year-to-date compared with 8.4% on the S&P 500.
Its IBD Accumulation/Distribution Rating of B indicates moderate institutional buying over the last 13 weeks.
Mutual funds bolstered their positions in June, with 7,789 owning shares, up from 7,785 in March. Its Sponsorship Rating of B – on a scale of "A" to "E," with "A" being the best – shows that better performing mutual funds own shares.
Alphabet topped second-quarter earnings and revenue estimates on July 23. Its profit grew 24%, which showed slowing from the 32% and 26% increases in the prior two quarters. But its sales growth ticked up 14% from two straight quarters of 12% increases.
The Magnificent Seven name's full-year 2025 profit is expected to rise 28%, with a more modest 7% in 2026.
Alphabet is facing an impending ruling on an antitrust case regarding a monopoly on its online search, expected in August. The ruling may swing shares, so investors should have an exit plan in place and follow the golden 7% loss rule.
Garmin Forms A Handle
Garmin stock is forming a choppy cup-with-handle base with a 242.47 buy point.
Shares tumbled 7.4% despite the company easily topping second-quarter earnings and sales estimates July 30. Its quarterly earnings grew 37% on 20% sales growth. But investors were disappointed in its 2025 profit and revenue guidance.
Analysts see its earnings flat to declining over the next four quarters. And its sales growth is expected to slide to 13% in the third quarter and drop 5% over the next three quarters.
Shares are climbing back from the steep earnings plunge and have regained their 21-day exponential moving average.
The IBD MarketSurge Growth 250 name has a 2.0 up/down volume ratio. It holds an Accumulation/Distribution Rating of B- and 1,994 mutual funds held shares at the end of June.
Garmin ranks No. 1 out of 18 stocks in the Consumer Products-Electronic group, which ranks 65th out of the 197 groups that Investor Business Daily tracks. Garmin makes electronic devices for fitness, navigation and outdoor recreation.
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