Tuesday 16 July 2024 11:16 am | Updated: Tuesday 16 July 2024 1:39 pm

Most bought UK stocks: Nvidia leapfrogs Apple as National Grid climbs ranks

Questions are growing over whether AI will deliver on its promises and justify the sky-high valuations of mega-caps like Nvidia.

UK investors continued to pile into Nvidia in the second quarter of 2024, with the stock rising to become the third most popular in the country.

AI-focused investments have continued to thrive in the UK retail marketplace, with tech hardware companies like Dell and Broadcom seeing a whopping 38 per cent jump in the number of UK investors over the last three months.

Nvidia, which started the year as the sixth most widely held stock, climbed to fifth by the end of the first quarter and now sits at third, overtaking Apple and electric vehicle manufacturer Nio, according to data from Etoro.

Meanwhile, Tesla and Amazon managed to cling onto the number one and two spots respectively, while Gamestop climbed one place to overtake Google owner Alphabet.

When looking at the biggest increase in holders between quarters, Dell and Broadcom were at the top, but athletic apparel retailer Lululemon jumped in ownership by 28 per cent, while National Grid climbed 22 per cent.

After National Grid unveiled a multi-billion pound capital raise earlier this year, there is also hope that the new Labour government will align with its plans to embank on an energy transition programme.

The biggest losers of the quarter were mining: Hut 8 fell 17 per cent in ownership, Anglo American by 15 per cent, Glencore by 14 per cent, and Newmont by 10 per cent.

Banks were similarly unpopular, with Natwest (-13 per cent) and Barclays (-10 per cent) seeing large drops among the number of UK investors putting money in their stocks.

The largest drop of the quarter, however, was Reddit, with 35 per cent of its UK shareholders selling out over the quarter after a strong IPO.

Meanwhile, Reddit’s holders collapsed by 35 per cent, with similar decreases in the buying of shipping company ZIM, Hut 7 Mining, and Crocs.

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,” said Etoro analyst Sam North.

“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.”