All of the Magnificent Seven stocks, including Nvidia (NVDA), were AWOL from IBD’s monthly list of new buys by the best mutual funds in May, And while Microsoft (MSFT), Alphabet (GOOGL), Tesla (TSLA), Apple (AAPL) and the others are still missing, Nvidia stock has returned — in style — to dominate this screen in June.
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In the latest report, the best mutual funds scooped up over $3.32 billion worth of shares in Nvidia. As the artificial intelligence juggernaut continues to wow Wall Street, the market capitalization for Nvidia — $3.03 trillion at Thursday’s close — eclipses that of Apple (APPL) at $2.98 trillion.
Now Nvidia looks to grab the crown from Microsoft, which currently has a market cap of $3.15 trillion.
Boosted by unmistakable institutional demand, Nvidia may soon pull off that feat. The stock launched yet another breakout last month and continues to notch fresh all-time highs. Nvidia has also pulled off a trifecta on IBD stock screens, landing a spot on the IBD 50, IBD Big Cap 20 and IBD Sector Leaders.
But top funds have opened their wallets to place bets beyond just Nvidia.
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 Beyond Nvidia Stock
Aside from Nvidia, Ameriprise Financial (AMP) is the only stock on the list with capital inflows over $1 billion. The best mutual funds invested roughly $1.39 billion worth of AMP stock.
Including Eli Lilly (LLY), JPMorgan Chase (JPM), Costco (COST) and Netflix (NFLX), a total of 11 stocks raked in over $200 million.
Featured on the IBD Breakout Stocks Index on May 22, Netflix stock has continued to climb since bouncing back above its 50-day moving average on the way to a new breakout.
Leading strong demand for restaurant stocks, Chipotle Mexican Grill (CMG) took in just under $500 million from these savvy fund managers. They also had a hankering for Cava Group (CAVA), Texas Roadhouse (TXRH), Wingstop (WING) and Domino’s Pizza (DPZ).
Chipotle, Cava and Texas Roadhouse all recently joined Nvidia on a recent screen of 21 stocks with the highest-possible 99 Composite Rating.
Building Positions Outside AI
While Nvidia continues to ride Wall Street’s demand for AI stocks, the best mutual funds once again bet big on the more tangible building sector.
Including homebuilders Lennar (LEN), PulteGroup (PHM), Meritage Homes (MTH) and Toll Brothers (TOL), 24 companies in the broad building sector made the list. Lennar saw the largest capital inflow within the sector at more than $143 million.
Heating and air-conditioning provider Lennox (LII) and cement manufacturer CRH (CRH) also forged a spot on the list.
As Nvidia has come on and off this list of new buys by the best mutual funds in recent months, the building sector has remained in demand. Throughout the entire year, this non-AI sector has maintained a strong — often leading — presence on the screen each month.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
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