UK investors have been flocking to artificial intelligence (AI) stocks recently, thanks to remarkable advancements made by companies such as OpenAI and its chatbot Chat-GPT. According to data from eToro the trading and investing platform, the number of UK investors opening new positions in AI-related stocks jumped by 54% from the last quarter of the first quarter of 2021.
This trend of increasing interest in AI is not limited to just one age group. Younger UK investors ages 18-34 are at the vanguard of the AI investment revolution, with the number of open positions in AI stocks rising by 63% compared to the previous quarter. However, middle-aged investors ages 35-54 and older investors over 55 have also been making investments, with the respective numbers of open positions rising by 51% and 46%.
The latest of eToro’s quarterly surveys of 10,000 investors across 13 countries showed that 32% of UK-based investors plan to increase their allocations to sectors that stand to benefit from AI and machine learning. Meanwhile, only 10% were planning to either reduce or avoid sectors that could profit from the use of AI and machine learning.
Data from eToro also highlights a surge of interest in companies developing AI and related technologies. C3 AI, a software company creating AI solutions for businesses, saw the number of positions held by UK investors skyrocket by over 9000% in the first quarter. Other stocks such as NVIDIA (open positions increased by 72%) and Intel (open positions jumped 48%) are also feeding off the wave of excitement towards AI, as is Alphabet (open positions rose 39%). OpenAI’s major backer Microsoft (open positions were up 24%), AI cybersecurity firm SentinelOne (open positions were up 15%), and chip maker AMD (open positions grew by 10%) have also seen a rise in open positions by UK investors.
Ben Laidler, Global Markets Strategist at eToro noted that “Investors are backing a diverse range of AI-related firms and not all flocking to one company.” He continued, “Ideally, investors looking to gain exposure to AI would think about allocating money to a group of promising firms in this sector so that they are diversified, rather than hoping one or two come good.”
OpenAI is a research laboratory dedicated to the development of artificial general intelligence in the form of digital agents. Founded in the year 2015, OpenAI has invested heavily in researching AI and has developed a wide range of projects such as the GPT-3 story generator, which has gained tremendous popularity in the AI world. OpenAI’s success has propelled the company to be a major player in the AI industry and has contributed to the surge in AI stock investments by UK investors.
Ben Laidler has been the Global Markets Strategist at eToro since March 2020 and his experience in financial markets and technology has enabled him to provide valuable insights into the trading and investing sector. With his experience in finance and his expertise in the financial world, Ben Laidler provides unique and valuable advice to eToro’s users on how to increase their exposure to the AI industry.
