Demand for artificial intelligence giants Nvidia and Alphabet remains obvious. Both stocks have secured spots on exclusive stock lists, including the Investor's Business Daily Breakout Stocks Index. Plus, Nvidia and Google Cloud announced a collaboration on generative AI earlier this month as Nvidia stock sets up a new buy point and Google stock remains in buy range.
Led by Nvidia, several Magnificent Seven stocks spearheaded this month's list of new buys by the best mutual funds. These top money managers poured a whopping $12.3 billion into Nvidia stock. They also scooped up $3.7 billion worth of Alphabet.
Also seeing impressive capital inflows were Microsoft with $11.4 billion and Meta Platforms with just under $7 billion.
So while institutional demand for Nvidia, Alphabet and these other tech titans remains strong, the tech-heavy Nasdaq has come under pressure. The Nasdaq has dropped below its 21-day exponential moving average and closed Wednesday's session over 2% below its 50-day line. It sliced below the 16,000 mark on Monday.
As the market indexes have retreated below key moving averages, IBD has reduced its recommended market exposure level, which now stands at 20%-40%.
Individual stocks do not operate in a vacuum, so keep an eye on the general market indexes while gauging the performance of Nvidia stock, Google and others.
See Who Joins Nvidia And Google On The IBD Breakout Stocks Index
Stock Lists Shine Spotlight On Nvidia, Google
In addition to making this week's Breakout Stocks Index and this month's list of new buys by top funds, Nvidia has also pulled off a trifecta on IBD stock lists. The AI powerhouse has earned a spot on the IBD 50, IBD Big Cap 20 and IBD Sector Leaders, our most stringent screen.
Google stock is on the IBD 50 and IBD Big Cap 20, alongside fellow Magnifcent Seven stock Meta.
AI Collaboration: Nvidia Teams Up With Google Cloud
On April 8, Nvidia and Google Cloud announced a collaboration on generative artificial intelligence. Unveiled at Google Cloud Next '24 in Las Vegas, the partnership aims to help startups around the world accelerate the creation of generative AI applications and services.
The new initiative combines Nvidia Inception with the Google for Statups Cloud Program, with aims to widen access to cloud credits, go-to-market support and technical expertise.
Meanwhile, Google unveiled a new "A3 Mega" AI processor using Nvidia's H100 technology. Google said it plans to use Nvidia's next-generation Blackwell platform in early 2025.
Alongside these collaborations with Nvidia, Google also is expanding in-house AI chip development using semiconductor architecture from Arm Holdings.
Nvidia Stock Etches Buy Point, Finds Support
Last week, Nvidia completed a new flat base showing a 974 buy point. It's the first base since Nvidia launched a new breakout in January and soared to record highs.
Riding strong institutional demand and forecasts of 469% earnings growth in its upcoming quarter, Nvidia has so far held support at its 10-week moving average. But with the Nasdaq under pressure, Nvidia is feeling the heat. After closing just above its 21-day line on Tuesday, the stock has now slipped back below it.
Nvidia ended Wednesday's session above that benchmark with its base and potential buy point intact.
Google stock managed to hold support above its 153.78 buy point, even posting a small gain. It remains within buy range.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities exchange traded fund from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to invest in the entire index in addition to, or rather than, buying individual stocks. Learn more here about the ETF and Innovator.
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