Mag 7 Remains Top Picks for Hedge Funds as Money Managers Poured $185B Into These Stocks in Q2

The Magnificent 7 stocks comprise a group of high-growth US tech firms that possess considerable influence over market movements, due to their substantial market capitalisations, robust financial performance, and rapid innovation.

Hedge funds in Q2 heavily invested in these trillion-dollar companies, reaffirming their belief in the future potential of these megacap stocks. Here, we list the top three hedge funds buying into these companies last quarter.

The top pick for hedge funds in Q2 was the Amazon stock (Nasdaq: AMZN), with hedge funds led by UBS Asset Management, Vanguard Group, and Victory Capital Management buying $42.8 billion (£31.8 billion) worth of shares of the tech giant. The Amazon stock is up 15.2% in the past six months as the company ramps up AI integrations across its business segments.

The next stock pick is the most valuable company in the world, Nvidia (Nasdaq: NVDA), which has a market cap of over $4.4 trillion (£3.2 trillion). The stock price has rallied a staggering 65.8% in the past six months as Nvidia continues to innovate new-age chips and GPUs, alongside forging global partnerships with AI companies. Hedge funds like Vanguard Group, Price T Rowe Associates, and UBS Asset Management collectively bought $40.8 billion (£30.3 billion) worth of Nvidia shares in Q2.

iPhone maker Apple (Nasdaq: AAPL) was the next on the list, with hedge funds purchasing $40.3 billion (£29.9 billion) of the stock. The investments were led by UBS, Vanguard, and BlackRock. The stock price has gained 16.7% over the past six months and recently received a boost as demand for the newly launched iPhone 17 continues to remain high.

Hedge funds led by Vanguard, Victory Capital Management, and Price T Rowe also invested $29.3 billion (£21.8 billion) in Microsoft (Nasdaq: MSFT) shares, which have gained over 35% in the past six months. The company is making solid progress in the AI and contact centre software markets. It has also successfully rolled out cooling technology for AI chips, reinstating robust momentum in the AI space.

Mark Zuckerberg-led Meta Platforms (Nasdaq: META) shares have also surged by over 28% in the past six months, as the company invests heavily in building AI products, particularly its AI smart glasses in partnership with leading global brands. UBS, Goldman Sachs, and Price T Rowe Associates bought $13.6 billion (£10.1 billion) worth of Meta shares in Q2.
Google-parent Alphabet (Nasdaq: GOOG/GOOGL) also witnessed considerable investments from hedge funds, led by UBS, Victory Capital Management, and Vanguard. These three hedge funds purchased over $13.3 billion (£9.89 billion) worth of the class A shares, which have soared 28.9% in the past six months. The class C shares have gained over 56% in the same period.

Lastly, Goldman Sachs, Vanguard, and Geode Capital Management collectively purchased $9.3 billion (£6.9 billion) worth of Tesla (Nasdaq: TSLA) shares in Q2. The stock price is up over 68% in the past six months despite volatility in recent times over Elon Musk's former role in DOGE. Analysts predict that Tesla has a $1 trillion (£744.1 billion) opportunity in the AI and automation space over the coming years.

Disclaimer: Our digital media content is for informational purposes only and not investment advice. Please conduct your own analysis or seek professional advice before investing. Remember, investments are subject to market risks and past performance doesn't indicate future returns.