According to data released by Vanda Research, retail investors are actively seeking opportunities to invest in four AI stocks in order to capitalize on the upcoming surge in the technology market.
The research firm stated that even though there was a minor dip in the inflow of retail investors from the previous week, their stock purchases continue to be higher than the daily average since the downfall of Silicon Valley Bank in early March.
“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 mega cap-led AI rally,” Vanda said.
As retail investors explore opportunities for success in the AI industry, the firm has identified four stocks that are gaining popularity among them.
1. Micron (MU)
Retail investors had already exhibited their interest in the semiconductor company even before the firm exceeded its revenue and earnings targets, attracting speculation that the stock could be another favorable investment in the AI sector. Vanda reported that the firm had generated over $3.75 billion in revenue in the previous quarter.
According to Vanda, even though Micron’s stock performance is not as robust as bigger players like Nvidia and Advanced Micro Devices, retail net purchases for Micron were 18 times higher than their daily average, well before the latest earnings report was released.
2. Oracle (ORCL)
Following an impressive earnings report, Oracle’s stock has experienced a significant surge, increasing by 40% since the beginning of the year. The shares even briefly reached a new all-time high. The company’s total revenue for the fiscal year 2023 reached $50 billion, marking an 18% increase compared to the previous year.
Additionally, on Wednesday, the database firm revealed new AI features in some of its cloud products. This announcement prompted more investors to take an interest in the company’s stock.
Before its most recent earnings report, the retail net purchases of the stock were approximately 145 times higher than the average daily volume.
3. Adobe (ADBE)
Adobe’s earnings reports were also optimistic, as the company achieved a record revenue of $4.82 billion in the second quarter. This figure represents an increase of approximately 10% as compared to the previous year.
Adobe, known for its digital-publishing software, has recently introduced a new platform called Adobe Firefly. This generative artificial intelligence platform is designed for content creators.
According to Vanda, retail investors made net purchases of the stock that were approximately 18 times higher than the average daily volume before the release of the latest earnings report. Since the beginning of the year, the stock has seen a significant increase of 43%.
4. Snowflake (SNOW)
The company has recently broadened its association with Microsoft and has initiated a new alliance with Nvidia. These collaborations allow for the integration of artificial intelligence into its data cloud services.
According to Vanda, retail traders are enthusiastic when their preferred stocks join forces with a prominent AI company. They anticipate that this partnership will contribute to the ongoing success of the stock. Vanda further explains that retail traders are showing their support for the company by purchasing out-of-the-money call options, demonstrating their confidence in the firm’s collaboration with NVDA and MSFT to incorporate AI tools into their range of services.
