Tesla Stock, Nvidia, Other ‘Magnificent Seven’ Stocks See Big Mutual Fund Purchases

Tesla stock — along with “Magnificent Seven” members Nvidia (NVDA) and Meta Platforms (META) — headline Wednesday’s IBD Screen Of The Day, a column that focuses on top ideas in the IBD Stock Screener.


Wednesday’s stocks to buy and watch come from the Stocks Funds Are Buying screen. This screen identifies stocks in which big mutual funds are increasing their positions. Other stocks on the screen include Magnificent Seven stocks Alphabet (GOOGL) and Amazon.com (AMNZ), along with streaming giant Netflix (NFLX).

Funds Pile Into Tesla Stock

Tesla (TSLA) surged 7.7% Tuesday, and on Wednesday poked above its 50-day line. Shares slipped 0.3% Wednesday after analyst firm Guggenheim reiterated its sell rating on the EV giant, with a 125 price target.

A decisive retake of the 50-day line would be bullish for the stock’s immediate base-building prospects.

Tesla stock is tracing the right side of a new cup base. For now, the next buy point is 299.29, according to IBD MarketSmith chart analysis, but keep an eye out for an earlier entry.

Amid strong fundamentals and big price gains since early January, Tesla stock boasts a strong 97 out of 99 IBD Composite Rating, according to IBD Stock Checkup.

Nvidia Stock

Graphics-chip maker and IBD Leaderboard stock Nvidia rallied 4.2% Tuesday, closing back above a 480.88 buy point in a short consolidation. Shares added 0.8% midday Wednesday, moving further past the entry. The 5% buy area goes up to 504.92.

On Aug. 29, Nvidia and Google Cloud announced they’re expanding their partnership. The companies said they are deploying new technologies that make it easier for Google Cloud customers worldwide to run supercomputers using Nvidia’s generative AI (artificial intelligence) technologies.

Nvidia smashed lofty expectations on Aug. 24 and guided higher. More than two dozen analysts hiked price targets on NVDA stock after the report.

‘Magnificent Seven’ Outside Tesla Stock: Meta, Alphabet, Amazon

The stock market’s Magnificent Seven consists of Apple (AAPL), Microsoft (MSFT), Nvidia, Tesla, Meta Platforms, Alphabet and Amazon.

Meta Platforms continues to consolidate below its 50-day line after peaking on July 28. Shares declined 1.1% Wednesday afternoon.

Alphabet is moving out of buy range beyond a flat base’s 129.04 buy point, with a 0.8% rise midday Wednesday. Bullishly, the stock’s RS line is at new highs, a sign of stock market outperformance.

Finally, Amazon looked to continue its rebound from the 50-day line. Shares tacked on 0.1% midday Wednesday. A more decisive bounce would place the e-commerce giant in a new buy area. So far, volume has been very light on the rebound, indicating a lack of institutional demand despite making the screen.

Streaming Giant Netflix

Netflix is retaking its 50-day line, rising 1.1% late afternoon Wednesday. Shares looked to extend their win streak to four sessions. An early buy point at 445.25 is in play, with a conventional buy point at 485.

Currently, Netflix is dealing with a writers’ strike in Hollywood. With almost all productions coming to a halt, the strike could turn into a big problem for Netflix, since the streaming giant relies on fresh content to keep its subscriber growth robust.

Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.


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