eToro Reports: UAE Investors Capitalize on Recent AI Dip
With a growing confidence in the long-term potential of AI and a willingness to invest in companies driving AI innovation.
Retail investors in the UAE are taking advantage of temporary price drops in the artificial intelligence (AI) sector, according to a report from the trading and investing platform eToro. The analysis reveals that UAE investors have significantly increased their exposure to AI-related stocks during market corrections in Q3. A notable surge in investment occurred after CrowdStrike Holdings experienced a 131% rise in holders, following a price drop linked to a software update that triggered a mass computer outage.
Other major players in the AI ecosystem also attracted strong investor interest. NVIDIA reported a 41% increase in holders, while Intel saw a 37% rise. Snowflake and Advanced Micro Devices (AMD) both recorded a 23% increase in holders, with Micron Technology (25%) and Taiwan Semiconductor Manufacturing (21%) following closely. These trends highlight the confidence of UAE investors in companies that are actively driving advancements in AI technology.
“UAE investors are increasingly forward-looking, focusing on industries that are expected to define the future of technology. The recent dip in AI stock prices presented a prime buying opportunity, especially in companies like CrowdStrike and Intel, where investors recognized their long-term potential despite short-term challenges,” said Jason Hughes, Senior Executive Officer at eToro. “The rise in interest around blockchain stocks also highlights growing awareness of its transformative capabilities, particularly in decentralised finance and other innovative sectors. Both AI and blockchain could offer robust long-term growth prospects, and it is evident that UAE retail investors are both strategically attuned to global trends and proactive in shaping portfolios that anticipate future growth.”
Blockchain Stocks See Rapid Growth in Popularity
Alongside AI, blockchain-related investments have seen a noticeable uptick in demand among UAE retail investors. Marathon Digital Holdings, a prominent cryptocurrency mining company, witnessed an 82% increase in exposure, ranking it as the second most sought-after stock during Q3. This trend underlines growing interest in blockchain technology, as investors continue to diversify their portfolios beyond traditional sectors.
Big Tech Anchors UAE Portfolios
Despite the focus on emerging technologies like AI and blockchain, Big Tech companies remain central to UAE investors’ strategies. At the close of Q3, familiar names such as NVIDIA, Tesla, Amazon, Apple, Microsoft, and Alphabet were still the most-held assets on eToro's platform. This ongoing preference for technology giants indicates a balanced approach, combining long-term stability with growth opportunities in disruptive sectors.
These developments illustrate a dynamic shift in the investment landscape, with UAE retail investors actively seeking opportunities in both innovative technologies and established tech giants to navigate evolving market conditions.
Jason Hughes concludes: “Known for their innovation and market leadership, these tech giants generally provide stability and long-term growth potential, making them reliable choices even as interest in emerging sectors like AI and blockchain grows. Investors consistently turn to Big Tech as the foundation of "their portfolios, reflecting confidence in these firms' ability to deliver strong returns over time.”
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