In the latest list of new buys by the best mutual funds, top money managers bet big on AI giants Nvidia, Microsoft, Palantir Technologies and Broadcom. But they pulled out the biggest guns for defense stock AAR Corp..
In fact, in addition to scooping up shares of AI stocks like Nvidia, Palantir, Microsoft and Broadcom, these savvy investors poured money into a total of 10 defense stocks. That included GE Aerospace, Heico, RTX and Howmet Aerospace.
Track This Monthly Screen Of New Buys By The Best Mutual Funds
AAR Eclipses Nvidia, Microsoft, Palantir And Broadcom
The best mutual funds placed their biggest bet on AAR Corp., investing an impressive $8.06 billion in the provider of airframe and engine parts and services for airline and defense markets.
AAR joined Interactive Brokers and TE Connectivity among a total of eight stocks raking in at least $1 billion each in the latest report.
Operating in over 130 countries, TE Connectivity makes advanced connectivity and sensor solutions for next-generation transportation, energy networks, automated factories, data centers, medical technology and more.
Including Nvidia and Microsoft, five more companies also joined the billion-dollar club. AI chipmakers Nvidia and Broadcom saw capital inflows of $4.83 billion and $1.44 billion, respectively. Software, cloud, AI and gaming giant Microsoft pulled in $3.69 billion.
The best mutual funds also poured $1.71 billion into fellow AI powerhouse Palantir. Shares spiked to a record high Tuesday after the company delivered a beat-and-raise earnings report, boosted by strong growth in its U.S. government and commercial businesses.
Meanwhile, top funds ate up just over $1 billion worth of food delivery firm DoorDash ahead of its Aug. 6 earnings report. On Thursday, shares of DoorDash spiked following a strong second-quarter report, but pulled back on Friday.
Company | Symbol | Amt invested (bil) | Comp Rating |
---|---|---|---|
AAR Corp. | $8.06 | 98 | |
Interactive Brokers | 7.73 | 97 | |
TE Connectivity | 7.12 | 97 | |
Nvidia | 4.83 | 99 | |
Microsoft | 3.69 | 99 | |
Palantir Technologies | 1.71 | 99 | |
Broadcom | 1.44 | 99 | |
DoorDash | 1.04 | 99 |
The links below highlight just a portion of this month's new buys and sells by top funds.
Click here to see all the stocks on the list.
Note: The New Buys list includes only new buys of the mutual funds rated from A+ to B- based on 36-month performance before screening for other proprietary criteria. The Latest Sells list tallies the number of top funds that were net sellers of each stock with ratings ranging from A+ to B+ in the fund's latest reporting period. Because some funds bought the same stocks sold by others, we also looked at the total number of buyers of each stock.
Best Mutual Funds Go On Offense For Defense Stocks
As noted above, a total of 10 stocks from the defense and aerospace group landed a spot on this screen. With several of these names at or near their record highs, the group ranks a strong No. 11 out of the 197 industries Investor's Business Daily tracks.
Shares of AAR ran into some turbulence after briefly hitting a record high last month. But the stock has so far held support at its rising 10-week moving average. On Friday, the stock spiked around 4% in strong volume.
Other defense stocks that have ridden demand to reach or near a 52-week high recently include GE Aerospace, RTX and Innovative Solutions & Support. After reporting earnings, Curtiss-Wright and Astronics both took hits, with the latter crashing below its 50-day line on Thursday.
Like with AAR, shares of Heico and Howmet Aerospace recently pulled back to test support at their 10-week lines.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.