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UK investors pile into AI bottlenecks as Q2 confidence surges

British retail investors shifted focus to AI supply chain bottlenecks in Q2, buying memory chip and energy stocks. Average portfolio contributions jumped 47% as confidence returned despite economic pressures.

  • eToro data shows ownership of Sandisk rose 185% and Marvell Technology 90% among UK users in Q2
  • Average portfolio contributions hit £3,554, up 47% from Q1, according to Scottish Widows
  • AI remained the most popular investment theme, with 35% of investors favouring it
  • UK allocations fell to 57% as investors shifted 21% to North America, largely US tech stocks

British retail investors have pivoted sharply towards artificial intelligence supply chain bottlenecks during the second quarter, according to data from investment platform eToro. Ownership of memory chip maker Sandisk among UK users surged 185% compared with the first quarter, while Marvell Technology saw a 90% rise in holders. The moves signal a growing sophistication among retail investors, who are now looking beyond headline AI stocks to companies that control critical components.

“We are entering a more mature phase of the AI trade,” said Lale Akoner, global market strategist at eToro. “Retail investors are no longer just buying the most obvious winners; they are starting to look for where supply bottlenecks, pricing power and capital spending are likely to create the next layer of beneficiaries.” Despite the shifts, Nvidia remained the most widely held stock on the platform among UK clients.

Separate research from retirement firm Scottish Widows found that average portfolio contributions rose to £3,554 between April and June, a 47% increase from £2,413 in the first quarter. The survey of 2,000 UK-based retail investors also revealed that AI was the most popular investment theme, cited by 35% of respondents, followed by renewable and clean energy infrastructure at 25%. Manuel Pardavila-Gonzalez, managing director of investments at Scottish Widows, said investors had shown “real resilience” despite global conflict and shifting UK political expectations.

Energy infrastructure stocks also attracted attention as investors recognised the growing power demands of AI data centres. Shares in GE Vernova, Bloom Energy and NuScale Power saw increased buying activity. “Energy remains on retail investors' radar, but the perspective is evolving,” said Akoner. “While traditional oil and gas names feature heavily among the fallers, investors appear to be turning their attention to clean power, nuclear-linked energy and low-carbon infrastructure.”

The data also highlighted a geographic shift: UK holdings fell to 57% of portfolios from 62% in Q1, while North American allocations rose from 16% to 21%. This aligns with eToro's findings that US tech stocks held high appeal. The space economy also drew interest following SpaceX's blockbuster IPO, with Intuitive Machines seeing a 62% increase in UK holders.

Why this matters: UK households with investments are increasingly exposed to global AI and energy trends, which could affect portfolio returns and retirement savings. The shift towards US stocks also has implications for the domestic market and currency exposure.

What this means for you: What this means for you: If you hold a pension or ISA, your portfolio may be increasingly tilted towards US tech stocks and AI-related assets. Mortgage holders should note that shifting investor sentiment can influence interest rate expectations and bond yields.

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