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Retail investors are chasing the next tech rally with AI-related stocks like Micron, Vanda said.
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“Sentiment remains buoyant as investors seem to be looking for the next best ‘juicy’ trade.”
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Although flows from retail investors have fallen slightly, stock purchases have been above the daily average since the collapse of SVB.
Retail investors are looking to chase the next tech rally and are pouring money into four AI stocks, according to data from Vanda Research.
Although inflows from retail investors fell slightly from the previous week, stock purchases remained above the daily average following the collapse of Silicon Valley Bank in early March, the investment research firm said Thursday. a rating.
“What’s more interesting, however, is that below the surface sentiment remains buoyant as investors appear to be looking for the next best ‘juicy’ trade after the megacap-led AI rally” , Vanda said.
The company identified four stocks that were gaining traction among retail investors as they searched for new winners in AI.
1. Micron (MU)
The semiconductor company just exceeded profit and revenue targets, generating $3.75 billion in revenue in the previous quarter. Still, retail investors had been interested in the stock even before it released its financial results, Vanda said, thanks to speculation it could be another AI gamble.
The stock lags bigger names like Nvidia and Advanced Micro Devices, but net retail buys for Micron were 18 times their daily average, even before the company released its latest earnings report. Vanda said.
2.Oracle (ORCL)
Oracle shares are up 40% year-to-date, with shares briefly hitting a new all-time high after a strong earnings report. Total revenue for fiscal 2023 reached $50 billion, up 18% from last year.
The database company also announced new AI capabilities in several of its cloud products on Wednesday, prompting more investors to get in on the action.
The stock’s retail net buying was about 145 times the daily average before its last earnings report.
3.Adobe (ADBE)
Adobe was another to benefit from upbeat earnings, with revenue hitting a record $4.82 billion in the second quarter, up about 10% from a year earlier.
The digital publishing software developer also recently unveiled its new platform, Adobe Firefly, a generative artificial intelligence platform for content creators.
The stock’s retail net buying was about 18 times the daily average before its last earnings report, Vanda said. The stock is up 43% from levels at the start of the year.
4. Snowflake (SNOW)
The company recently expanded its partnership with Microsoft and launched a new partnership with Nvidia to implement AI in its data cloud services.
“Retail marketers appreciate having one of their favorite stocks partner with an AI leader,” Vanda said, adding that they expected the stock to continue its momentum. “The company’s partnership with NVDA and MSFT to integrate AI tools into their suite of services has been well received by retail traders who are jumping in and buying more and more OTM call options. .”
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