- Technology viewed as the most overvalued sector in the market today
- Investors see AI as one of the strongest long-term investment opportunities
- Large technology platforms, AI-first firms and chipmakers emerge as the leading AI opportunities
- Retail investors increasingly focus on valuations and fundamentals when deploying capital during market downturns
June 24, 2026 – U.S. retail investors remain firmly committed to the long-term investment opportunity presented by artificial intelligence, but the latest Retail Investor Beat from trading and investing platform eToro reveals an increasingly judicious approach to evaluating technology investments.
eToro’s study of 1,000 US retail investors reported that technology is now viewed as the most overvalued sector in the market (28%), ahead of energy (20%) and real estate (19%). Yet despite concerns around technology valuations, investors remain optimistic about the long-term potential of AI. The research also found investors mobilizing dollar-cost averaging, with nearly one-third (29%) saying they no longer attempt to time markets and instead invest routinely or automatically.
AI Trade Broadens Beyond Big Tech
While large technology platforms remain the most popular AI investment opportunity overall, the findings suggest U.S. retail investors are broadening their focus. Strong support for AI-first firms and semiconductor companies suggests investors increasingly believe the next phase of AI returns may be generated across a wider ecosystem of companies.
When asked which segment of the AI market is most likely to generate the strongest investment returns over the next five years, investors were split:
- One-third (33%) of respondents believe the largest technology companies integrating AI, including Microsoft, Alphabet and Meta, are poised to generate the strongest returns. Notably, younger investors such as Generation Z and Millennial investors remain particularly bullish on large technology platforms, at 39% and 38% respectively.
- Specialized AI-first companies such as OpenAI, Anthropic and xAI were selected by 30% of respondents, tying with semiconductor and chipmaking companies such as Nvidia and Intel.
- AI software providers and cybersecurity companies benefiting from AI adoption were selected by 26% of respondents as having the strongest potential to drive returns.
Commenting on the findings, Bret Kenwell, eToro’s US Investment Analyst, said: “As the AI trade unfolds, retail investors are getting more granular with their approach. While the AI narrative can ebb and flow every few months, this is a long-term catalyst brewing within the tech sector and has the potential to produce many winners, and losers, as time goes on. Retail investors are doing their homework and don’t plan to miss out on Wall Street’s biggest multi-year theme.”
Investors Increasingly Focused on Fundamentals
As retail investors work to cut through the headlines and make smarter investing decisions, they appear increasingly discerning within sectors rather than viewing each as a single trade. For example, investors are split on technology, with 28% saying it is among the most overvalued sectors, while 19% reporting it among the most undervalued. What’s more, lower valuations and strong company fundamentals rank among the top three motivations for investing during market dips, indicating a renewed focus on fundamentals as retail investors search for their next opportunity.
Bret Kenwell concluded: “Retail investors continue to show that experience is earned over time. They are not abandoning risk or losing optimism, but they are becoming more thoughtful about how they take that risk, with greater attention to portfolio construction, diversification, valuation, and fundamental analysis.
“They remain positioned around long-term themes like AI and broader market growth but are not blindly chasing momentum. Instead, they are becoming more selective, more aware of potential risks, and more willing to adjust accordingly. That does not signal bearishness, it signals a more disciplined and selective investor.”
ENDS
Notes to editors
The latest Retail Investor Beat was based on a survey of 11,000 retail investors across 13 countries and 3 continents. The following countries had 1,000 respondents: UK, US, Germany, France, Australia, Singapore, Italy and Spain. The following countries had 600 respondents: Netherlands, Denmark, Poland, Romania, and the Czech Republic.
The survey was conducted from May 14 – 29, 2026 and carried out by research company Opinium. Retail investors were defined as self-directed or advised and had to hold at least one investment product including shares, bonds, funds, investment ISAs or equivalent. They did not need to be eToro users.
Media contacts
pr@etoro.com
About eToro
eToro is the trading and investing platform that empowers you to invest, share, and learn. We were founded in 2007 with the vision of a world where everyone can trade and invest in a simple and transparent way. Today we have 40 million registered users from 75 countries. We believe there is power in shared knowledge and that we can become more successful by investing together. So, we’ve created a collaborative investment community designed to provide you with the tools you need to grow your knowledge and wealth. On eToro, you can hold a range of traditional and innovative assets and choose how you invest: trade directly, invest in a portfolio, or copy other investors. You can visit our media centre here for our latest news.
Disclaimers:
Securities trading is offered by eToro USA Securities Inc., member of FINRA and SIPC, a self-directed broker-dealer that does not provide recommendations or investment advice. Crypto trading is offered by eToro NY LLC and is available to New York residents only. eToro NY LLC is a FinCEN-registered money services business, licensed with NYDFS (Money Transmitter License – MT #104940) (Virtual Currency License – VC #122584). eToro NY LLC is not a registered broker-dealer or FINRA member, and your cryptocurrency holdings are not FDIC or SIPC insured. CopyTrading is not investment advice or a recommendation. The value of your investments may go up or down. Your capital is at risk. Options involve risk and are not suitable for all investors. Please review Characteristics and Risks of Standardized Options prior to engaging in options trading. Dollar cost strategy involves continuous investment regardless of fluctuating price levels; you should consider your ability to continue investing through periods of low price levels. Content, research, tools, and stock symbols on eToro’s website are for educational purposes only and do not imply a recommendation or solicitation to engage in any specific investment strategy. All investments involve risk, losses may exceed the amount of principal invested, and past performance does not guarantee future results. Visit our Disclosure Library for additional important disclosures including our Customer Agreement, Customer Relationship Summary and Privacy Policy. FINRA Brokercheck © 2026