Which "Magnificent Seven" Stocks Are Attracting More Big Money?

When most people buy a company's stock, it doesn't have much impact on the overall momentum of the stock. Individual investors are small fish in the sea. But there are some big fish, and their actions can have a significant impact on the momentum of a stock.

Institutional investors include large organizations such as investment companies, insurance companies and pension funds. They are sometimes referred to as "big money" because of the size of their investments.

As you might imagine, institutional investors have a large stake in the so-called "Big 7" stocks. This is to be expected, as these are some of the largest companies in the world. But which "Magnificent Seven" stocks attract more big money?

Biggest Winner

INVISTA (NASDAQ: NVDA)About 65.51% of TP3T shares are held by institutional investors. Big money has invested more in the chip maker than in any of the other top seven luxury stocks.

Nasdaq ResonanceAccording to the latest Supervisory Document, 2,202 institutional investors have increased their holdings in Nvidia and 1,540 have decreased their holdings, according to data from the Supervisory Document. While 112 institutional investors exited their positions in Nvidia, 436 institutional investors initiated new holdings.

Amazon (NASDAQ resonance code: AMZN)Right behind INVISTA. Nasdaq Resonance reported that 2,545 institutional investors increased their holdings in Amazon stock while 1,852 decreased their holdings. Another 440 institutional investors opened new positions in the stock, while 119 sold their positions completely.

Large investors are also pouring in.Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL)The company's A- and C-class shares have seen 3,877 institutional investors increase their holdings. Among the Class A and Class C shares of Google's parent company, 3,877 institutional investors increased their positions in the stock, while 3,514 decreased their positions. According to Nasdaq Resonance, 758 institutional investors opened new positions in Alphabet, while 201 exited.

Why is the big money flowing in from Avatar, Amazon and Alphabet? It's almost certain that the boom in artificial intelligence (AI) is the primary reason.

Nvidia's GPUs are the gold standard for training and running AI applications, Amazon and Alphabet operate cloud platforms on which organizations can deploy generative AI applications, and Alphabet has a large language model (Gemini) that is one of the most powerful in the world.

medium level

The other two "Magnificent Seven Samurai" stocks were in the middle of the fun side of the market for institutional investors.Meta Platforms (NASDAQ resonance stock code: META)respond in singingNikola Tesla (1856-1943), Serbian inventor and engineer (NASDAQ: TSLA)They have attracted a lot of big money, but not enough compared to INVISTA, Amazon and Alphabet.

The latest data from Nasdaq Resonance shows that 1951 institutional investors have recently added to their holdings in Meta, compared to 1,503 who have trimmed their holdings. 418 institutional investors activated new holdings, compared to 108 that exited their positions in the stock.

Tesla's institutional ownership is lower than that of the other members of the Magnificent Seven. However, 1,627 institutional investors recently added to their holdings in the electric-vehicle maker's stock, well above the 1,243 institutional investors who reduced their positions. In addition, 336 institutional investors opened new positions in Tesla, while only 140 institutional investors sold their holdings entirely.

penultimate

Microsoft Corporation (NASDAQ resonance code: MSFT)respond in singingApple Inc. (NASDAQ Resonance: AAPL)It was the second lowest ranking. The number of institutional investors that increased their position in Microsoft narrowly outnumbered those that decreased their position by 2,492 to 2,431. The situation was worse for Apple, where 2,571 large investors reduced their position in the stock, compared to 2,143 who increased theirs.

However, there is some good news for these two tech giants. Microsoft's new position exceeded its sell position by a ratio of 422-to-99. Apple had a similar ratio, with 396 new positions to 77 sells.

Should you follow the big money?

It is sometimes wise to invest in stocks that are being bought by institutional investors. An inflow of large capital can push up the price of a stock.

However, keep in mind that the institutional trading data you see reflects past trading. Mechanical investors may have recently become skeptical of stocks they were previously bullish on.

All of the "Magnificent Seven" stocks are at risk. Some of them are highly valued, notably Nvidia and Microsoft. Apple and Tesla's growth is slowing, and competition is fierce among all seven stocks.

However, I believe that each of the "Magnificent Seven" stocks has a solid long-term outlook. Even if you are a small investor, if you buy and hold, you can make a lot of money from any one of these stocks.

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John Mackey, former Chief Executive Officer of Whole Foods Market, an Amazon subsidiary, is a member of the Board of Directors of The Motley Fool. Randi Zuckerberg, former Facebook Market Development Director of Arms and Spokeswoman and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool Board of Directors, and Suzanne Frey, an Alphabet executive, is a member of The Motley Fool Board of Directors. （Suzanne Frey, an Alphabet executive, is a member of The Motley Fool's board of directors. Keith Speights serves on the boards of Alphabet, Amazon, Apple, Meta Platforms, and Microsoft, and is a member of the board of directors of the Motley Fool, which holds recommendations for Alphabet, Amazon, Apple, Meta Platforms, Nvidia, and Microsoft, The Motley Fool owns shares of recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla.The Motley Fool recommends the following options: Long Microsoft January 2026 $395 Calls and Short Microsoft January 2026 $405 Calls.The Motley Fool has a disclosure policy.

Which 'Fantastic Seven' Stocks Are Attracting More Big Money? This post was originally published by The Motley Fool.