The Best Mutual Funds Are Pouring Money Into Apple, Microsoft, and These 2 Sectors

As Apple (AAPL) dives into augmented and virtual reality with its Vision Pro headset, top mutual funds are pouring real money – $2.6 billion – into AAPL stock. In the latest list of new buys by top funds, these savvy investors have also lasered their way into other tech titans Microsoft (MSFT), picking up $2.4 billion worth of MSFT stock.


Wall Street may have been confused by Apple’s unveiling of the Vision Pro’s price, which starts at $3,499. Analysts were expecting it to cost around $3,000 for the device to go on sale early next year. Apple stock shook off the initial decline after the announcement.

Broadcom (AVGO), Adobe (ADBE), ServiceNow (NOW), Oracle (ORCL) and Applied materials (AMAT) are among 10 companies grossing between $109 million and $341 million in this month’s report.

Within this elite group, top investors have also found storage space for the retail giant walmart (WMT), investing approximately $207 million in WMT shares.

Microsoft spearheads the dominant presence of software stocks across a wide range of industry groups on the list of new buys by top mutual funds, with 38 companies making it to the top. Broadcom joins 11 other semiconductor stocks that etched their names on the latest report.

Click here to see the full list of new buys by top funds.

Apple and Microsoft are the best bets of the best mutual funds

Further confirming their strength and institutional demand, five of the 12 companies below have also secured a place on the major IBD stock lists.

ServiceNow and AMAT stocks both earn a spot on the IBD Big Cap 20. ServiceNow also joins CRM stocks on the IBD 50, while Microsoft continues its longstanding presence among the IBD’s long-term leaders.

Business Symbol Amount invested in $ (mil) Competition score EPS Ranking RS Ranking RS Industrial Group SMR Ranking
Apple AAPL 2,600 90 80 89 B A
Microsoft MSFT 2,392 97 90 92 A A
Broadcom AVGO 341 97 95 95 A+ A
Adobe ADBE 246 98 95 87 A A
ServiceNow NOW 238 99 99 89 A A
equinix EQIX 230 90 88 80 VS VS
Selling power RCMP 207 98 98 92 A B
walmart WMT 207 84 88 81 VS B
Accenture ACN 181 87 82 82 C+ B
Oracle ORCL 155 98 84 94 A+ A
Applied materials AMAT 111 98 88 91 A+ A
S&P Global SPGI 109 90 88 78 C+ A

Microsoft leads software industry dominance

Software vendors were undeniably prominent on the latest New Buys list of top mutual funds. But it’s also important to focus on specific industry groups within the broader sector.

From Windows and Azure Cloud to Xbox, Microsoft AI and beyond, Microsoft operates in a wide range of business segments. It is categorized under the Desktop industry group, alongside Adobe.

NOW, CRM Lead In-Demand Enterprise Software Group

ServiceNow, Selling power (CRM), Working day (WDAY), Datadog (DDOG), Dynatrace (DT) and Palantize (PLTR) lead the Computer Software-Enterprise group. With a crop of 14 stocks, enterprise software leads all software groups in terms of the number of companies on the list of new buys by major funds.

Welcoming the major IPOs of the class of 2021, (MNDY) also made its way onto the new buys screen by top mutual funds. Earlier this month, the productivity software game was featured in The New America column.

Business Symbol Amount invested in $ (mil) Competition score EPS Ranking RS Ranking SMR Ranking
ServiceNow NOW 238.29 99 99 89 A
Selling power RCMP 207.28 98 98 92 B
Working day WDAY 27.57 99 98 89 A
Palantir Technologies PLTR 16.31 99 81 98 VS
Cloudy NET 11.6 99 81 85 B
Datadog DDOG 11.29 98 99 87 A
Dynatrace DT 5.51 99 99 92 A
Nutanix NTNX 4.93 88 81 92
JFrog FROG 4.55 99 81 90 VS
Manhattan Associates MANH 1.53 99 95 95 A
Black Baud BLKB 0.64 95 79 93 B MNDY 0.61 97 81 95 VS
UiPath PATH 0.37 98 81 88 VS
Qualtrics International XM 0.13 99 81 94 VS

Bets by the best mutual funds in the chip industry

Led by AVGO, AMAT and ASML, 12 stocks earned a spot on this month’s new buys list by top funds. As in the software sector, semiconductor stocks can come from a range of chip-rated industry groups.

AMAT, ASML, Research (LRCX), KLA (KLAC) and Axcelis Technologies (ACLS) all belong to the group of solid-state equipment. The band ranks solidly at No. 15 on the industries 197 IBD tracks.

Broadcom, Rambus (RMBS) and Lattice Semiconductor (LSCC) are among those in the fabless group of chips, which ranks 12th.

Business Symbol Amount invested in $ (mil) Competition score EPS Ranking RS Ranking SMR Ranking
Broadcom AVGO 807 97 95 95 A
ASML ASML 723 99 95 91 A
Research LRCX 617 95 88 93 A
Monolithic power systems MPWR 490 98 98 82 A
KLA KLAC 443 97 95 92 A
Axcelis Technologies ACLS 158 99 96 99 A
Applied materials AMAT 133 98 88 91 A
Nova NVMI 108 95 88 91 A
Towards innovation ON 107 95 85 96 B
ON Semiconductor ON 84 89 85 91 A
Lattice Semiconductor LSCC 81 97 99 91 A
Rambus RMBS 64 99 97 98 A

Follow Matthew Galgani on Twitter at @IBD_MGalgani.


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