Nvidia Returns, Palantir Remains As Top Funds Bank On This Stock

After going AWOL last month, artificial intelligence giant Nvidia (NVDA) bounced back onto the latest list of new buys by the best mutual funds, alongside fellow Magnificent Seven member Alphabet (GOOGL). Riding the enduring AI wave, Palantir Technologies (PLTR), Broadcom (AVGO), AppLovin (APP) and Taiwan Semiconductor Manufacturing (TSM) also etched their names on the list.

But the best mutual funds bet the biggest "dinero" on Spanish bank Banco Santander (SAN). These savvy money managers scooped up an eye-catching $14.76 billion worth of shares in the global financial juggernaut. Fellow money center stock JPMorgan Chase (JPM) also made the list, but did not join Santander, Nvidia and Alphabet among the eight companies that raked in at least $1 billion in the latest report.

The links below highlight just a portion of this month's new buys and sells by top funds.

• New Buys By The Best Mutual Funds
• Latest Sells By The Best Mutual 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.

Nvidia Makes The Billion-Dollar Club; Palantir Falls Short

While Santander led the list, the large sums invested in Nvidia and Alphabet showed the AI wave continues apace. The best mutual funds poured $4.72 billion into Nvidia and scooped up $2.83 billion worth of Alphabet stock. AI chip stock Broadcom pulled in $1.72 billion.

Featured in the IBD Stock Analysis in August, AAR (AIR) continued to display strong institutional demand. The aerospace and defense stock took in an impressive $9.53 billion.

Interactive Brokers (IBKR) — the Sept. 30 IBD Stock Of The Day — garnered $2.7 billion from the top funds.

Montrose Environmental (MEG) and Nextracker (NXT) round out the eight companies that each say capital inflows of at least $1 billion.

JPMorgan fell just shy of the $1 billion mark, garnering $974 million from the best mutual funds. AppLovin ($700 million), Palantir stock ($538 million), Robinhood Markets (HOOD) ($527 million) and Shopify (SHOP) ($376 million) also displayed clear signs of demand.

Are AI Stocks Driving A Stock Market Tech Bubble? Here's What The Data Says.

AI Demand Remains Robust Among The Best Mutual Funds

The best mutual funds continue to show demand for the AI-fueled semiconductor sector.

In addition to Nvidia, Broadcom and Taiwan Semiconductor, several others from the broad chip sector made the cut.

Monolithic Power Systems (MPWR), Astera Labs (ALAB), Credo Tech (CRDO) and Rambus (RMBS) joined Nvidia and Broadcom from the fabless semiconductor group.

Semiconductor equipment makers on the list include ASML (ASML), Lam Research (LRCX) and KLA (KLAC).

Hailing from the Electrical Power/Equipment industry, Vertiv (VRT) earned a spot on the latest of new buys top funds. In fact, the AI infrastructure firm and Nvidia partner has now made the list for five consecutive months. Vertiv blasted out to a record high to kick off October and now trades near the top of its buy zone.

Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.

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