Top of the stocks: most bought and sold stocks in August

Mixed news on artificial intelligence – the stock market theme du jour – caused US stock markets to flatline since mid-August, although the month as a whole was another of generally rising share prices…by David Brenchley

A damning report from the Massachusetts Institute of Technology (MIT) on the return companies are getting from their investments in generative artificial intelligence may have caused a pullback in tech stocks with the Nasdaq Composite sliding c. 3%.

The MIT report, published mid-August, found that 95% of organisations are getting zero return from the gen AI investments they were making. “Just 5% of integrated AI pilots are extracting millions in value, while the vast majority remain stuck with no measurable impact,” the report said.

Later on in the month, the world’s largest company, chipmaker Nvidia (NVDA), beat analyst forecasts yet saw its shares fall in the aftermath thanks to disappointing data centre revenues. In addition, investors seemed worried by continued geopolitical issues relating to sales to China, not long after the company said that it would hand 15% of the revenue it generated from the country to the US government.

Still, August was a positive month for investors, despite a falling dollar once more dragging on returns for UK-based investors. The MSCI USA Index returned c. 3.6% in US dollar terms during August, beating the MSCI United Kingdom’s c. 2.2% gain in local currency terms. However, a near-2% pullback in the greenback reduced pound sterling gains to c. 1.7%, once more meaning you’d have been better off backing Britain than America.

That said, it was China that took the honours as best-performing stock market, with a c. 4.1% gain in sterling as the country continues to work its way out of its four-year-long bear market. Neighbour Japan returned c. 3.3%.

Top 10 most bought and sold shares in August

These were the most (and least) popular shares with UK retail investors on three of the largest investment platforms last month:

Source: AJ Bell, Bestinvest and interactive investor

Bubbling up

It’s been six months since the data analytics firm Palantir Technologies (PLTR) was on our list, and it’s been quite the ride in that time. Even with a c. 25% fall around April’s so-called Liberation Day and a c. 18% drop since 08/08/2025, the stock is up c. 85% in those six months, c. 406% over the past 12 months, and is a ten-bagger (up more than 900%) in the space of just two years. To many, PLTR is the Cisco of 2025 – an exciting company at the forefront of the AI revolution, that is trading at eye-watering multiples (including a price-to-earnings ratio of c. 500x).

Despite warnings that a bubble has formed, investors are keen to ride the momentum that PLTR has, with the company sitting as the fifth most-bought stock in our list, joining NVDA, which remained popular but slipped to third. It should be noted, though, that PLTR and NVDA were also the fourth and third most-sold stocks this month respectively.

Mining for gains

It could also be suggested that another stock on the list, Wishbone Gold (WSBN) – a new entrant – is in a bubble, with shares up c. 688% so far this year. WSBN has six gold, silver and copper exploration assets, mainly based in Western Australia and Queensland.

Shares were suspended between 22/01/2025 and 24/03/2025 after it agreed to a reverse takeover, an agreement that was later terminated. It then went on to raise £1.75m of cash in a stock market placing, which seems to have been the basis for its most recent ascent, which has seen shares rise c. 300% since 15/08/2025.

The stock was seventh on our list, though we can’t tell exactly when the bulk of the buying occurred and, as a result, how many actually got in before the most recent share price bump. What can be said with confidence is that investors are now clamouring not only for AI stocks, but also gold miners, with the gold price trading at record highs, up c. 42.5% in the past 12 months. Metals One (MET1) has also occupied a place on the list now for the past three months.

Top five most bought investment trusts in August

Moving onto investment trusts, and the most-purchased trusts exhibited similarities with the previous month once more, with technology and growth continuing to be on investors’ wishlists:

Source: AJ Bell, Bestinvest and interactive investor

Rinse and repeat

August’s five most-bought investment trusts were a repeat of July, with a slightly different order to them this time around. Scottish Mortgage (SMT) and JPMorgan Global Growth & Income (JGGI), perennial investment trust favourites, remained the top two.

Polar Capital Technology (PCT) moved up one place to fourth as investors continued to bet on an ongoing tech bull run. PCT’s sectoral peer Allianz Technology Trust (ATT) would have been in the top ten if our list went down that far.

In the UK, the impressive performing Temple Bar (TMPL), up c. 29% in the past 12 months, slipped to fifth, while City of London (CTY), another investor favourite thanks to its 59 consecutive years of dividend increases, up c. 13.5% over 12 months, rose back up the rankings.

There may be trouble ahead

Stock markets around the world hit fresh record highs during August, suggesting investors are bullish and momentum is likely to continue. That could be boosted if and when the US Federal Reserve finally ends its interest rate pause and cuts its Fed funds rate, which markets expect it to do in September.

The Fed is under pressure from the US administration to cut rates in order to ease the strain on households, though they have so far held firm.

Still, this week we saw data showing that, despite stock market recoveries from April’s correction, British investors are circumspect. UK-based investors pulled a net £658m from global equity funds, as well as a similar amount from UK equity funds. It’s the third month in a row we’ve seen outflows from global equity funds. Perhaps investors are sensing some trouble somewhere down the line?

Disclaimer

This is not substantive investment research or a research recommendation, as it does not constitute substantive research or analysis. This material should be considered as general market commentary.