Top Fund Managers Buy 10 Stocks Led by KLA and Alphabet as US Market Gains 14%
Updated
Updated · Morningstar · Aug 24
Top Fund Managers Buy 10 Stocks Led by KLA and Alphabet as US Market Gains 14%
2 articles · Updated · Morningstar · Aug 24
Summary
Thirty-nine actively managed Medalist fund portfolios show top stock-pickers added 10 names over the past three months, with KLA, Alphabet, SpaceX, Nvidia and Eli Lilly among the most-bought.
KLA drew 11 top-manager buyers even though Morningstar says the stock is 7% overvalued, reflecting continued conviction in semiconductor equipment tied to rising chip complexity and AI demand.
Alphabet and Nvidia also ranked near the top, with 12 and 10 managers buying them; Morningstar estimates the shares are 21% and 22% undervalued, respectively.
Not every favorite looked cheap: SpaceX had 12 managers buying despite trading 125% above fair value, while Eli Lilly was 31% overvalued and still attracted seven buyers.
The buying comes as the Morningstar US Market Index is up nearly 14% in 2026 despite uncertainty over inflation, rates, oil, tariffs and geopolitics, and growing doubts about AI spending returns.
Why are Wall Street's top active managers aggressively buying into AI and space stocks that analysts explicitly warn are highly overvalued?
Could the massive concentration of fund manager capital in a handful of AI and semiconductor stocks trigger the next major market correction?
With DoorDash launching commercial drones and AI reshaping data centers, are traditional valuation metrics failing to capture this new technological era?