Q2 UK top stocks: Nvidia leapfrogs Apple as UK retail investors ride AI wave

UK retail investors are continuing to pile into Nvidia shares and are also casting a wider net in the hunt for AI winners, according to the latest quarterly stocks data from trading and investing platform eToro

• Nvidia rises from 5^th to 3^rd on list of most-held stocks by UK eToro users
• AI plays also comprised 10 of the top 20 ‘top risers’ in Q2
• National Grid saw the fourth-largest quarter on quarter increase in holders at 22%
• Value rotation appears short-lived, with mining stocks, airlines, and banks seeing biggest sell-offs

eToro looked at which companies saw the biggest proportionate change in UK holders, quarter-on-quarter (table 1), while also looking at the 10 most-held stocks on the platform (table 2).

Amongst the most-held stocks, Q2 saw a significant shift in the rankings with Nvidia rising to become the third-most popular stock with eToro’s UK users, behind only Tesla and Amazon. The AI market leader ranked fifth at the end of Q1 and sixth three months earlier, but has continued to attract investor interest during a quarter in which it briefly became the world’s most valuable company.

Other firms in the space are also attracting attention from investors, with several businesses with lofty AI ambitions featuring on the ‘top risers’ list (table 2). This includes Dell, which jointly topped the UK rankings alongside semiconductor designer Broadcom, with both stocks seeing a 38% increase in the number of UK holders on the eToro platform. Dell has made several AI product announcements in recent times while also being endorsed as a potential supplier for Elon Musk’s new start-up xAI.

Commenting on the data, eToro analyst Sam North said: “AI excitement is continuing to drive returns, and UK retail investors are ensuring their portfolio provides adequate exposure to this theme. Although Nvidia’s rapid rise to the ranks of the world’s most valuable companies has rightly captured headlines, the data indicates that UK investors are also looking further afield in identifying firms with the potential to benefit from artificial intelligence as it continues to evolve.”

Other notable UK risers included the National Grid, which had the fourth-highest quarterly increase in holders, at 24%. The utilities company has embarked on an ambitious renewable transition plan, and with investment in energy a core priority for the new Labour government, investors will be hoping this transformation will provide a boost to performance.

With growth-focused tech shares dominating the top risers, the UK top fallers list was populated largely by lower-growth, dividend-focused stocks in more traditional industries. Mining stocks Hut 8 (-17%), Anglo American (-15%), Glencore (-14%), and Newmont (-10%) were amongst the stocks that UK eToro users dropped from their portfolios the most in Q2. The same was true for banks, with Natwest (-13%) and Barclays (-10%) also ranking in the top 20 UK fallers.

North adds: “With AI investment and share price performance continuing at pace, eToro users are defying predictions that higher for longer interest rates might have prompted a slight rotation away from US tech. Although the steady dividends offered by banks, miners, and airlines have seen these assets come back into fashion in a volatile market, the presence of these sectors amongst the top fallers suggests a confidence in the growth environment, and an optimism that the AI hype can continue to deliver.”

Table 1: Shows stocks most widely held by eToro users in the UK and their position last quarter

Table 2: Shows which stocks have seen the biggest proportional increase and decrease in UK holders on the eToro platform quarter on quarter

Methodology:

The tables compare data from the eToro platform on the final day of Q2 2024 with the final day of Q1 2024. The data refers to funded accounts of eToro users globally.

The data in the first table shows the 10 stocks which have seen the biggest proportional increase and decrease in holders on the eToro platform quarter on quarter (Q2 vs Q1). The data in the second table shows the top 10 most held stocks positions (open positions) by investors on the eToro platform at the end of the Q2 2024. As the vast majority of stocks traded on eToro are the real asset, this data does not include positions held as CFDs.

All data accurate as of after market close on Friday 28th June.