Artificial intelligence (AI) stocks are gaining significant traction among UAE retail investors, while interest in traditional Big Tech and pharmaceutical companies wanes, according to the latest quarterly data from trading platform eToro.
NVIDIA (NVDA.O) has climbed to become the second most popular stock on eToro’s platform in the UAE, trailing only Tesla (TSLA.O). The AI chip manufacturer saw a 37 percent surge in its share price during the second quarter, attracting a flood of new investors.
Other AI-related stocks also experienced substantial growth in user interest. Advanced Micro Devices (AMD.O) and Intel (INTC.O) saw increases of 29 percent and 21 percent respectively, with the latter recently unveiling new AI chips in an attempt to reclaim market share from its competitors.
“The enthusiasm for AI giants underscores a collective investor belief in the transformative potential of artificial intelligence technologies,” said George Naddaf, Regional Manager for GCC and MENA at eToro.
In contrast, established tech companies faced declining investor interest. Snapchat (SNAP.N) saw an 11 percent decrease in holders, while Adobe (ADBE.O), Netflix (NFLX.O), and Apple (AAPL.O) experienced drops of 16 percent, 5 percent, and 5 percent respectively. This shift comes amid reports of workforce reductions across the tech sector.
The pharmaceutical sector also saw a downturn, with Moderna (MRNA.O), Jaguar Health (JAGX.O), and Pfizer (PFE.N) experiencing declines of 9 percent, 6 percent, and 5 percent respectively. This trend reflects the receding impact of the COVID-19 pandemic and its associated market effects.
“Investors are now favouring the promising advancements and higher growth potential within the AI sector over the established yet increasingly volatile traditional tech landscape,” Naddaf explained.
The data also revealed significant shifts in other sectors. Shopify (SHOP.TO) and Dell Technologies (DELL.N) saw the largest increases in holders, up 139 percent and 45 percent respectively. Conversely, Snapchat and ZIM Integrated Shipping Services (ZIM.N) experienced the biggest drops, falling 40 percent and 23 percent respectively.
These trends underscore a broader shift in investor sentiment, prioritising future-oriented, high-growth sectors over established but currently less dynamic industries.
With the pandemic’s immediate impact fading and global travel resuming robustly, as evidenced by Dubai Airport’s resurgence as one of the busiest airports worldwide investor’s attention is also shifting away from pandemic-driven pharma gains towards sectors poised for substantial post-pandemic growth. This evolving investor sentiment underscores a broader trend of prioritising future-oriented, high-growth sectors over established, but currently less dynamic, industries,” Naddaf added.
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