Tesla, Nvidia, Other 'Magnificent 7' Stocks See Big Mutual Fund Purchases

Tesla stock, along with members of the "Magnificent Seven", Nvidia (NVDA), and Meta Platforms(META), headlined Wednesday's IBD Screen of The Day. This column focuses on the top ideas from IBD Stock Screener.

Stocks Funds are Buying is the screen that shows you Wednesday's best stocks to watch and buy. This screen shows stocks where mutual funds have increased their holdings. The screen also shows the Magnificent Seven stock Alphabet (GOOGL), Amazon.com AMNZ, and streaming giant Netflix NFLX.

Funds Pile Into Tesla Stock

Tesla (TSLA), which surged 7.7% on Tuesday, pushed above its 50-day level on Wednesday. The shares fell 0.3% on Wednesday, after Guggenheim reiterated their sell rating for the EV giant with a 125-price target.

The stock's prospects for immediate base building would be boosted by a decisive retaken of the 50-day level.

Tesla stock is on the right side a new base cup. According to IBD MarketSmith's chart analysis, the next buying point is currently 299.29. However, keep your eyes open for a previous entry.

According to IBD Stock Checkup, Tesla stock has a solid 97 IBD Composite rating out of 99, based on strong fundamentals.

Nvidia Stock

Nvidia, the IBD Leaderboard's graphics-chip maker, rallied by 4.2% on Tuesday. The stock closed above a buy point of 480.88 after a brief consolidation. Midday on Wednesday, shares added 0.8% and moved further beyond the entry. The 5% buying area extends up to 504.92.

Nvidia announced on Aug. 29 that they are expanding their partnership with Google Cloud. The companies announced that they will deploy new technologies to make it easier for Google Cloud users worldwide to run supercomputers by using Nvidia’s generative AI technologies (artificial Intelligence).

Nvidia exceeded expectations and raised guidance on August 24. After the report, more than two dozen analysts raised their price targets for NVDA.

Meta, Alphabet and Amazon are the 'Magnificent 7' outside of Tesla stock.

Magnificent Seven is a stock market grouping of Apple (AAPL), Microsoft(MSFT), Nvidia (Tesla), Meta Platforms (Alphabet), and Amazon.

Meta Platforms is still consolidating below its 50 day line, despite having peaked on the 28th of July. Wednesday afternoon, shares fell by 1.1%.

Alphabet has moved out of the buy range, beyond the flat base's buy point of 129.04, after a 0.8% increase at midday on Wednesday. The stock's RS is now at new highs. This is a positive sign for the stock market.

Amazon is now looking to continue its recovery from the 50-day mark. The shares gained 0.1% by midday on Wednesday. A stronger bounce would put the ecommerce giant into a new buying area. Volume has been low on the rebound so far, which indicates a lack institutional demand, despite the screen.

Netflix is the Streaming Giant

Netflix has regained its 50-day line after rising by 1.1% in the late afternoon of Wednesday. The shares were looking to extend their winning streak to four sessions. A conventional buy point of 485 is also in play. An early buy at 445.25, and a conventional point at 485, are both available.

Netflix is currently dealing with the writers' strike that has taken place in Hollywood. The strike, which has caused almost all productions to stop, could be a major problem for Netflix. This is because the streaming giant depends on new content to maintain its subscriber growth.