Nvidia (NVDA) has long symbolized the artificial intelligence revolution. But when it comes to demand from the top-performing mutual funds, one Magnificent Seven stock — Meta Platforms (META) — stands out.
Meta was the only Mag 7 stock that made the list of new buys by top funds this month and in October. Nvidia has been AWOL from this stock screen since June.
Both Meta and Nvidia stock earn a spot on Investor’s Business Daily’s Leaderboard. But shares of Meta continue to trade within buy range. On Monday, Nvidia dropped below its buy point to kick off the new week.
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Meta Stock, Snap Boosted By Possible TikTok Ban
Social media leaders Meta and Snapchat-parent Snap (SNAP) rose Friday after a federal appeals court upheld a law that could lead to TikTok getting banned within the U.S. The court ruled that the potential TikTok ban is constitutional, denying a challenge from ByteDance, the parent of the popular platform.
Meta remains in turnaround mode amid declining earnings and revenue. But another announced round of job cuts has helped earnings estimates. For the full year, analysts expect Meta to post earnings growth of 46% to $22.65 per share.
On the sales front, Meta drove revenue $40.6 billion in the third quarter, a year-over-year increase of 19%. In the fourth quarter, analysts forecast a 17% rise to $47 billion.
Meta continues to invest heavily in artificial intelligence. Chief Executive Mark Zuckerberg and his team are telling investors it expects to spend between $37 billion and $40 billion on capital expenditures this year.
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Meta In Buy Range As Nvidia Slips
After breaking a short trendline and a short-term high of 524.58, Meta once again joined the IBD Leaderboard in mid-September.
Although down Monday, the stock remains within its 602.95 to 633.10 buy range after breaking out from a flat base. The pattern is third-stage, which entails more risk than a first- or second-stage consolidation.
Meanwhile, Nvidia is clinging to support at its 50-day moving average after slipping below its 140.76 buy point. The IBD 50 and IBD Sector Leaders member fellow below its 21-day exponential moving average on Friday. The stock is down as China opens an antimonopoly probe.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
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