Nvidia (NVDA) and Alphabet (GOOGL) continue to be in high demand within the artificial intelligence space. Both companies have secured spots on the Investor’s Business Daily Breakout Stocks Index, and recently announced a collaboration on generative AI. Nvidia stock is setting up a new buy point, while Google stock remains in buy range.
Top mutual funds have shown strong interest in Nvidia and Alphabet, with fund managers investing $12.3 billion and $3.7 billion, respectively. Other tech giants like Microsoft (MSFT) and Meta Platforms (META) have also seen significant capital inflows.
Despite strong institutional demand, the tech-heavy Nasdaq has faced pressure, dropping below its 21-day exponential moving average and 50-day line. As a result, IBD has reduced its recommended market exposure level to 20%-40%.
Nvidia has earned a spot on multiple IBD stock lists, including the IBD 50, IBD Big Cap 20, and IBD Sector Leaders. Google stock is also on the IBD 50, alongside Meta and Amazon.com (AMZN).
The collaboration between Nvidia and Google Cloud aims to help startups accelerate the creation of generative AI applications and services. Google unveiled a new “A3 Mega” AI processor using Nvidia’s H100 technology and plans to use Nvidia’s next-generation Blackwell platform in early 2025. Google is also expanding in-house AI chip development using Arm Holdings (ARM) architecture.
Nvidia stock has completed a new flat base with a 974 buy point and has held support above its 10-week moving average. Google stock has managed to hold support above its 153.78 buy point, remaining within buy range.
Investors interested in the IBD Breakout Stocks Index can also consider the IBD Breakout Opportunities (BOUT) exchange-traded fund from Innovator Capital Management.