UAE retail investors have opted to support artificial intelligence firms while Big Tech and pharmaceutical stocks lost momentum, according to the latest quarterly stocks data from eToro, a trading and investing platform.
Most popular stocks
In Q2 2024, there was a notable change in the most held stocks rankings, with NVIDIA rising to become the second most popular stock on the platform, just behind Tesla.
The leading AI company had been ranked fifth at the close of Q1 and ninth three months earlier, continuing to attract new users buoyed by a 37 per cent increase in its share price during the latest quarter.
Semiconductor firm Advanced Micro Devices (AMD), which saw a 29 per cent rise, and Intel, up by 21 per cent following its introduction of new AI chips aimed at regaining market share from NVIDIA and AMD, also experienced significant growth in user interest.
Palantir Technologies and Taiwan Semiconductor Manufacturing Company also climbed by 16 per cent to feature among the top 10.
George Naddaf, Regional Manager, GCC and MENA at eToro, explained, “The enthusiasm for AI giants reflects a collective investor belief in the transformative potential of artificial intelligence technologies. Investors are now favouring the promising advancements and higher growth potential within the AI sector over the established yet increasingly volatile traditional tech landscape.”
Biggest losers
Conversely, global technology companies like Snapchat (-11 per cent), Adobe (-16 per cent), Netflix (-5 per cent), and Apple (-5 per cent) observed a decline in investor interest, with reports of workforce reductions across the sector.
Pharmaceutical stocks such as Moderna (-9 per cent), Jaguar Health (-6 per cent), and Pfizer (-5 per cent) also faced a downturn, as the Covid-19 pandemic and its aftermath waned.
Naddaf added, “With global travel resuming robustly, as evidenced by Dubai Airport’s resurgence as one of the busiest airports worldwide, investors have shifted their focus away from pandemic-driven pharma gains to sectors poised for substantial post-pandemic growth.”
“This evolving investor sentiment highlights a broader trend of prioritising future-oriented, high-growth sectors over established but currently less dynamic industries,” he concluded.
