Artificial intelligence is stabilizing the stock marketYuichiro Chino/Getty Images
Retail investors are chasing the next tech rally with AI-related stocks like Micron, Vanda said.
“Sentiment remains buoyant as investors appear to be in the chase for the next best ‘juicy’ trade.”
Though retail investor flows fell slightly, stock purchases are above the daily average since SVB’s collapse.
Retail investors are looking to chase the next tech rally and are pouring money into four AI stocks, according to data from Vanda Research.
Though retail investor inflows fell slightly from the previous week, stock purchases remain above the daily average following the collapse of Silicon Valley Bank in early March, the investment research firm said in a note on Thursday.
“What’s more interesting, however, is that beneath the surface, sentiment remains buoyant as investors appear to be in the chase for the next best ‘juicy’ trade following the megacap-led AI rally,” Vanda said.
The firm identified four stocks that were gaining traction among retail investors as they search for new winners in the AI space.
1. Micron (MU)
The semiconductor firm just beat its earnings and revenue targets, pulling in $3.75 billion in revenue over the previous quarter. Still, retail investors had taken interest in the stock even before it posted its financial results, Vanda said, thanks to speculation it could be another AI gamble.
The stock has lagged behind larger names like Nvidia and Advanced Micro Devices, but retail net purchases for Micron were 18 times their daily average, even before the company released its latest earnings report, Vanda said.
2. Oracle (ORCL)
Oracle’s stock is up 40% from the start of the year, with shares briefly hitting a new record after a stellar earnings report. Total revenue for the 2023 fiscal year hit $50 billion, up 18% from last year.
On Wednesday, the database company also announced new AI capabilities within several of its cloud products, leading more investors to jump in on the stock.
Retail net purchases of the stock were about 145 times the daily average…