Funds Want A Piece Of This Fashionable AI Stock — And Its Breakout

When you think of artificial intelligence stocks, names like Nvidia (NVDA), Alphabet (GOOGL), Apple (AAPL) and Meta Platforms (META) come to mind. But as AI weaves its way across all industries, Ralph Lauren (RL) stock has fashioned its own use of this powerful technology.

Boosted by exceptional demand from top fund managers, Ralph Lauren stands ready to launch a fresh breakout to a record high.

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Ralph Lauren In Fashion And In Demand

With Nvidia, Apple and Google once again absent, Meta Platforms was the only Magnificent Seven stock to make December's list of new buys by the best mutual funds.

Yet Ralph Lauren also shined brightly on this screen, raking in an impressive $781 million. Further showcasing demand, Ralph Lauren stock sports a B Accumulation/Distribution Rating and a 1.3 up/down volume ratio.

Plus, the fashion icon sports eight quarters of rising fund ownership.

With a 91 Composite Rating, Ralph Lauren tops all its industry peers, including Coach parent Tapestry (TPR) and Victoria's Secret (VSCO).

Taking Stock Of AI Trends

Based in New York, Ralph Lauren offers luxury lifestyle products. It operates across five categories: apparel, footwear & accessories, home, fragrances and hospitality. Brands include Polo Ralph Lauren, Chaps and more.

Earlier this year, Ralph Lauren expanded its AI-driven intelligent inventory technology. In the U.S., that move builds on a pilot program initiated in its European and Asian stores.

The use of AI helps the company drive sales by improving in-stock availability on sizing and bestselling products. Over time, Ralph Lauren plans to roll out this predictive buying model across a wide range of categories and markets.

Ralph Lauren Stock On Runway To Breakout

Having soared since bottoming out in 2022 and resetting its base count, Ralph Lauren stands poised to pop into the limelight again. On Christmas Eve, the stock closed just 2% shy of a 236.16 buy point in consolidation pattern.

Showing market leadership, the fashion brand's relative strength line trades right around a 52-week high, earning a coveted blue dot in MarketSurge.

Trying to not get outdone, Nvidia — Tuesday's IBD Stock Of The Day — has climbed back to just above its 50-day moving average, aiming to reenter a prior buy zone.

Meta Platforms climbed back into buy range Tuesday as Apple notched a record high and Google rose for a fourth straight day.

Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.

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