Apple may have fallen out of favor, but Magnificent Seven megacaps Meta Platforms and Nvidia just made triumphant returns to the monthly list of new buys by the best mutual funds. And continuing to ride the artificial intelligence zeitgeist, Palantir Technologies and AppLovin — two of the 2024 stocks of the year — also popped onto the screen. But these savvy investors backed up the truck to place their biggest bet on AI chip designer Broadcom.
These top performing institutional investors scooped up an eye-popping $24.49 billion worth of Broadcom stock just ahead the company's earnings report, which sent shares lower Friday. While not a member of the Mag 7 like Tesla, note that Broadcom now makes up 3.2% of the market capitalization weighting on the Nasdaq, eclipsing the 2.4% weighting for the robotaxi maker that just took another hit on the feud between Elon Musk and President Donald Trump.
And the spending by the best mutual funds did not end with just Broadcom, Meta, Palantir and AppLovin. Fueled by AI and other trends, top money managers poured a combined total of at least $1 billion into each of 25 stocks.
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.
Best Mutual Funds Bet Big On Broadcom, Meta And Beyond
While Apple has been AWOL from this list since the March report, this month marks the return of Nvidia, which had been missing since making three straight appearances in April, March and February of last year. As Wall Street ponders what's next for the AI juggernaut, the best mutual funds invested $5.26 billion in the company in the latest report.
Although that pales in comparison to the nearly $25 billion that flowed into Broadcom, just three other companies raked in more money. Only Meta Platforms ($7.15 billion), AppLovin ($6.1 billion) and Charles Schwab ($6 billion) joined Nvidia in the $5 billion-plus club.
Netflix ($4.91 billion), CrowdStrike ($3.73 billion), Palantir ($3.47 billion) and GE Vernova ($3.19 billion) all saw large capital inflows from the best mutual funds.
Robinhood Markets — featured as one of the best online brokers of 2024 — took in $2.69 billion. Shopify ($2.66 billion) and ServiceNow, which was recently featured in the IBD Stock Analysis, also saw investments in the $2 billion to $3 billion range.
The best mutual funds also poured at least $1 billion into LPL Financial — Wednesday's IBD Stock Of The Day — MercadoLibre ($1.57 billion) and Axon Enterprise ($1.28 billion).
| Company | Symbol | $ Amt Invested (bil) | Comp Rating |
|---|---|---|---|
| Broadcom | $24.49 | 99 | |
| Meta Platforms | 7.15 | 96 | |
| AppLovin | 6.1 | 97 | |
| Charles Schwab | 6 | 93 | |
| Nvidia | 5.26 | 97 | |
| Netflix | 4.91 | 99 | |
| Philip Morris | 4.33 | 89 | |
| NatWest | 3.96 | 98 | |
| CrowdStrike | 3.73 | 97 | |
| Visa | 3.62 | 95 | |
| Palantir Technologies | 3.47 | 99 | |
| GE Vernova | 3.19 | 97 | |
| Robinhood Markets | 2.69 | 98 | |
| Shopify | 2.66 | 96 | |
| ServiceNow | 2.66 | 96 | |
| Trane Technologies | 2.01 | 92 | |
| LPL Financial | 1.90 | 99 | |
| Carvana | 1.69 | 99 | |
| Boston Scientific | 1.68 | 97 | |
| Amphenol | 1.64 | 99 | |
| Intuit | 1.62 | 98 | |
| Nextracker | 1.59 | 96 | |
| MercadoLibre | 1.57 | 99 | |
| Axon Enterprise | 1.28 | 98 | |
| Sea | 1.05 | 99 |
Stocks To Watch: Top IPOs, Big And Small Caps, Growth Stocks
GE Aerospace Leads Defense Stocks In Demand
Aerospace and defense stocks secured a strong presence on the latest list of new buys by the best mutual funds. Including GE Aerospace, 11 stocks landed on the screen.
GE stock was joined by industry peers Heico, Howmet Aerospace, Curtiss-Wright, Astronics and Leonardo DRS, each of which recently soared to 52-week highs. Israel-based Elbit Systems also notched a record high in recent days as it bounced back into buy range.
Innovative Solutions & Support, which makes flight navigation systems and precision flight instrumentation equipment, has soared after posting 329% earnings growth on May 14.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
