7 Stocks The Smart Money is Buying NOW

About this video

• Video Title: 7 Stocks The Smart Money is Buying NOW
• Channel: Investor Weekly
• Speakers: None explicitly named, but refers to heads of major firms like Larry Fink (BlackRock), Tim Buckley (Vanguard), Abigail Johnson (Fidelity), and Jamie Dimon (JP Morgan).
• Duration: 00:15:05

Overview

This video analyzes the latest Form 13F filings from major institutional investors like BlackRock, Vanguard, Fidelity, and JP Morgan to identify seven stocks that "smart money" is buying. It explains how to interpret these filings, highlighting that while delayed, they offer insights into institutional conviction. The video breaks down the rationale behind these institutional buys, focusing on underlying trends like AI infrastructure, digital platforms, and energy transformation, and advises individual investors to use this information as a directional guide rather than a direct trading strategy.

Key takeaways

• Form 13F Filings: These quarterly reports from large institutional investors disclose their US stock holdings, providing a glimpse into their investment strategies, though they are typically about 45 days old.
• Identifying Smart Money Trends: Observing patterns where multiple major asset managers increase their positions in the same stocks can signal where significant capital is flowing and potential long-term growth areas.
• Key Investment Themes: The analysis highlights three major trends attracting institutional investment: AI infrastructure (Nvidia, Broadcom, TSMC), digital platforms (Microsoft, Meta, Amazon), and energy transformation (GE Vernova).
• Individual Stock Rationale:
  • Amazon (AMZN): BlackRock is increasing its stake, driven by growth in AWS, advertising, and its core retail network, supported by strong cash flow.
  • Meta Platforms (META): Vanguard is buying, seeing potential in its AI-driven transformation of ad targeting and content delivery, despite significant capital expenditure on AI infrastructure.
  • GE Vernova (GEV): Fidelity is investing, viewing it as a key player in providing the power grid infrastructure needed for an increasingly digital and AI-driven world.
  • Microsoft (MSFT): JP Morgan, Vanguard, and Fidelity are all increasing their positions, recognizing its strong recurring revenue streams (Windows, Office 365, Azure) and its integration of AI tools like Copilot.
  • Nvidia (NVDA): All four major institutions are increasing their stakes, recognizing its dominance in AI hardware (chips, software, ecosystem) and its role as the "toll collector" of the AI revolution.
  • Broadcom (AVGO): Held by all four institutions, it benefits from AI semiconductor growth and its enterprise software business (VMware), offering a balance of hardware and recurring revenue.
  • TSMC (TSM): Considered the critical "factory" for AI chips, its advanced manufacturing capabilities make it a fundamental enabler of the AI revolution, attracting institutional investment.
• Investor Strategy: Individual investors should use 13F filings as a directional compass, focusing on themes and long-term trends rather than blindly copying trades.