As demand and interest in Big Tech and pharmaceutical companies decline, retail investors in the UAE are rallying behind artificial intelligence (AI) stocks.

This is according to the latest quarterly data from trading and investing platform eToro, which further stated that Nvidia has soared to the second most popular stock in the UAE, following Tesla. The AI chip manufacturer saw a 37% surge in its share price during Q2. 

Advanced Micro Devices and Intel also witnessed increases of 29% and 21%, respectively. “The enthusiasm for AI giants underscores a collective investor belief in the transformative potential of artificial intelligence technologies,” said George Naddaf, Regional Manager for GCC and MENA at eToro.

Conversely, global technology giants like Snapchat, Adobe, Netflix, and Apple witnessed a decline in investor interest. Snapchat saw an 11% drop, Adobe 16%, Netflix 5%, and Apple 5%, coinciding with reports of workforce reductions across the sector.

Pharmaceutical stocks also faced a downturn — Moderna experienced a 9% decrease, Jaguar Health 6%, and Pfizer 5%.

“Investors are now favoring the AI sector’s promising advancements and higher growth potential over the established yet increasingly volatile traditional technology landscape. This evolving investor sentiment underscores a broader trend of prioritizing future-oriented, high-growth sectors over established, but currently less dynamic, industries,” said Naddaf.

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