Top Mutual Funds Favor AppLovin, Google, Broadcom; Sideline Nvidia and Palantir Amid AI Market Shifts

Based on the Investors.com report [1] published on December 5, 2025, top mutual funds are reallocating their AI stock holdings, prioritizing AppLovin, Google, and Broadcom while reducing or ignoring Nvidia and Palantir. Supporting this trend, internal market news analysis [0] highlights a key strategic development: Broadcom has secured half of Samsung’s High-Bandwidth Memory (HBM) output to supply Google’s AI chips. This partnership positions Broadcom as a critical component supplier for Google’s AI infrastructure, with Google’s TPU shipments expected to quintuple by 2028.

AppLovin, another favored stock, recently gained 3.26% and received a $860 price target from Bank of America [0], enhancing its attractiveness to fund managers. On December 5, 2025, most mentioned stocks posted gains, except Google, which saw a slight decline.

1. The Broadcom-Google HBM partnership [0] is a primary driver of their mutual fund appeal, as it solidifies their roles in the high-demand AI chip ecosystem.
2. AppLovin’s positive analyst coverage and price target [0] differentiate it from other AI stocks in fund managers’ allocations.
3. The sidelining of Nvidia and Palantir indicates a potential shift in AI stock preferences, possibly due to competitive dynamics, valuation considerations, or strategic positioning.

• Opportunities
  : Broadcom stands to benefit from long-term HBM demand for Google’s AI chips [0]; AppLovin could realize upside if it meets the Bank of America price target expectations.
• Risks
  : Competition in the HBM market may affect Broadcom’s supply terms with Samsung; shifts in AI chip demand or Google’s TPU production plans could impact both Broadcom and Google; AppLovin’s stock may face volatility if it fails to align with analyst projections.

Top mutual funds are favoring AppLovin, Google, and Broadcom in their AI stock portfolios while sidelining Nvidia and Palantir. Broadcom’s securing of half of Samsung’s HBM output for Google AI chips strengthens their AI ecosystem positions. AppLovin has received a $860 price target from Bank of America. Most mentioned stocks had gains on December 5, 2025, except Google, which declined slightly. This analysis provides objective context for understanding current mutual fund allocation trends in the AI sector.