Why investors dashed for AI bottlenecks during Q2
The second quarter (Q2) of 2026 saw increased enthusiasm from British investors, and they appear to be positioning their assets strategically in order to capitalise on looming challenges for the artificial intelligence (AI) boom.
Data from investment platform eToro shows that their its investors predominantly bought semiconductor stocks, particularly the makers of memory chips, during Q2.
Memory is a key bottleneck for the AI and technology trade. Ownership of memory hardware producer Sandisk (NASDAQ:SNDK) on the platform rose 185% in Q2 compared to Q1, according to the analysis, while ownership of Marvell Technology (NASDAQ:MRVL) rose by 90%.
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|
Rank |
Biggest risers among eToro’s UK users |
Increase in holders QoQ |
Biggest fallers among eToro’s UK users |
Decrease in holders QoQ |
|---|---|---|---|---|
|
1 |
SanDisk Corp/DE |
185% |
Crocs Inc |
-24% |
|
2 |
ServiceNow Inc |
117% |
UnitedHealth |
-24% |
|
3 |
Marvell Technology Group Ltd |
90% |
ConocoPhillips Co |
-21% |
|
4 |
Intuitive Machines Inc |
62% |
Occidental Petroleum Corp |
-18% |
|
5 |
Micron Technology, Inc. |
52% |
SLB Ltd |
-18% |
|
6 |
Western Digital Corporation |
50% |
Chevron |
-18% |
|
7 |
Nokia Oyj |
49% |
CVS Health Corp |
-17% |
|
8 |
Vertiv Holdings Co |
48% |
ExxonMobil |
-15% |
|
9 |
Rocket Lab Corp |
42% |
Target Corp |
-14% |
|
10 |
Quantum Computing Inc |
41% |
General Dynamics Corp |
-13% |
Source: eToro
“We are entering a more mature phase of the AI trade,” said Lale Akoner, global market strategist at eToro. “Retail investors are no longer just buying the most obvious winners; they are starting to look for where supply bottlenecks, pricing power and capital spending are likely to create the next layer of beneficiaries.”
Despite the rise in ownership of these winners, none were significant enough to knock the AI infrastructure giant Nvidia (NASDAQ:NVDA) off pole position as the most-owned stock for eToro’s UK retail investors.
|
Company |
Ranking at the end of Q2 2026 |
Ranking at the end of Q1 2026 |
|---|---|---|
|
NVIDIA Corporation |
1 |
1 |
|
Tesla Motors, Inc. |
2 |
2 |
|
Amazon.com Inc |
3 |
3 |
|
Microsoft |
4 |
4 |
|
Apple |
5 |
5 |
|
Nio Inc. |
6 |
6 |
|
Meta Platforms Inc |
7 |
7 |
|
Alphabet |
8 |
8 |
|
Rolls-Royce |
9 |
9 |
|
Palantir Technologies Inc. |
10 |
11 |
Source: eToro
Investors became more confident during Q2
According to research from retirement firm Scottish Widows investors were more willing to put funds into their portfolios during Q2 than in the previous quarter.
Average portfolio contributions rose by 47%, reaching £3,554 between April and June, up from £2,413 from January to March, according to the firm’s latest investment pulse survey of 2,000 UK-based retail investors.
“Investors have shown real resilience this quarter, increasing their contributions even as global conflict has escalated and the UK political landscape has shifted expectations,” said Manuel Pardavila-Gonzalez, Scottish Widows’s managing director of investments. “Even as the cost of living continues to bite, most aren’t reacting to short-term noise or alarmist headlines – they’re staying the course rather than making knee-jerk decisions.”
He added that Q2 often sees a seasonal spike in investing as investors top up their portfolios and make use of their ISA allowance around the end of the tax year on 5 April.
The survey also identified a shift in allocations overseas. While UK-held investments remained the largest single allocation at 57% (down from 62% in Q1), allocations to North America increased from 16% to 21% – consistent with eToro’s findings that US tech stocks held high appeal for British investors last quarter.
Similarly, AI was the post popular investment theme – 35% of respondents highlighted this as their favourite theme – followed by renewable and clean energy infrastructure with 25% of respondents.
Where else did retail investors look last quarter?
Memory isn’t the only AI bottleneck that retail investors exploited last quarter.
Energy is another important part of the AI puzzle. With the power demands of AI data centres rising all the time, demands for energy are set to grow, and this was reflected in a dash for clean power and energy infrastructure stocks like GE Vernova (NYSE:GEV), Bloom Energy (NYSE:BE) and NuScale Power (NYSE:SMR).
“Energy remains on retail investors’ radar, but the perspective is evolving,” said Akoner. “While traditional oil and gas names feature heavily among the fallers, investors appear to be turning their attention to clean power, nuclear-linked energy and low-carbon infrastructure.”
Akoner added that as well as AI’s increasing power demands, the energy transition away from fossil fuels in order to improve individual countries’ energy security is a further tailwind for clean energy stocks.
Unsurprisingly, given SpaceX’s blockbuster IPO taking place in the quarter, the space economy was another focal point for investors in Q2.
Space infrastructure manufacturer Intuitive Machines (NASDAQ:LUNR) was the fourth-biggest riser among UK users, with holders increasing 62%, while Rocket Lab (NASDAQ:RKLB), AST SpaceMobile (NASDAQ:ASTS) and Ondas (NASDAQ:ONDS) were also among the 20 stocks that saw their ownership on eToro increase most during the quarter.
It remains to be seen whether investors will sustain their current tech optimism going forward, but Scottish Widows’ Pardavila-Gonzalez believes investors should stay the course.
“While we’re expecting more of the same uncertainty in the next quarter, the principles of investing remain the same and it’s important not to let short-term volatility derail long-term plans,” he said.
