Retail investors shift to energy, rare-earths and AI

eToro’s platform data shows retail investors have increased trading and allocations in energy, rare-earths and artificial intelligence over recent weeks across the company’s global user base.

Activity moved into traditional energy names, renewables-related stocks and oil and gas producers, alongside miners and developers of rare-earth metals. Investors also raised exposure to companies tied to AI development, including chip designers, AI software firms and providers of cloud machine-learning infrastructure.

The brokerage linked the shifts to concerns about energy security and the supply of critical materials, and to continued interest in companies expected to benefit from AI adoption. eToro reported that clients cited geopolitical developments and potential disruptions to supply chains when explaining their rebalancing.

Energy allocations included both producers of fossil fuels and firms involved in renewable projects. Interest in rare-earths centered on miners and processors of elements used in high-performance magnets, electric vehicle motors and other advanced electronics components.

AI-related trading was focused on semiconductor firms that design chips for machine learning, software companies that build AI tools and cloud providers that host machine-learning services. eToro said the pattern appeared across thematic ETFs and single-stock trades.

The changes were most pronounced among newer retail investors and among users who trade thematic products on the platform. eToro described the moves as portfolio adjustments rather than broad exits from other sectors, with many users maintaining diversified positions while increasing weightings in the three categories.

The brokerage said it will keep monitoring retail flows and publish updates on investor behavior as market conditions evolve.