- 51% of UK retail investors say China is best positioned to lead the AI race, ahead of 44% who select the US
- The US-China gap on expected long-term stock-market returns among UK investors has narrowed from 19 percentage points to 3 percentage points since Q4 2024
- The proportion of UK retail investors with exposure to Chinese stocks has nearly doubled in two years, rising from 7% in Q2 2024 to 13% in Q2 2026
24 June 2026: UK retail investors rank China ahead of the United States as the country best positioned to lead the global AI race, according to the latest quarterly Retail Investor Beat from trading and investing platform eToro.
In a survey of 1,000 UK retail investors, 51% selected China as best positioned to lead the global AI race, ahead of 44% who selected the US. A quarter selected the UK itself, at 26%. The findings suggest that UK investors increasingly see AI as a global contest for technological and economic leadership, not just a US stock-market theme.
eToro’s Global Market Strategist, Lale Akoner, comments: “US technology giants such as Nvidia, Microsoft, Alphabet and Amazon remain central to the AI story. But UK investors are increasingly recognising that China is becoming a serious competitor in the race for AI leadership. China has built strength across AI, from cloud computing and advanced manufacturing to consumer applications used by millions of people.”
“What’s striking is that investors don’t see this as an either-or choice. Many still see significant opportunities in US technology stocks while also recognising China’s growing role in shaping the future of AI. The survey suggests investors are widening their focus beyond the US and paying closer attention to where the next wave of AI-driven growth could come from.”
China gains ground as a long-term market opportunity
China’s perceived AI lead comes as UK investors are also reassessing long-term market opportunities. Since Q4 2024, the share of UK retail investors who believe China will generate the strongest long-term stock-market returns has risen from 22% to 32%, while the share selecting the US has fallen from 41% to 35%. Over the same period, the US lead over China has narrowed from 19 percentage points to just 3.
The shift is also visible in portfolio exposure. The proportion of UK retail investors with exposure to Chinese stock markets has risen from 7% in Q2 2024 to 13% in Q2 2026, meaning exposure has nearly doubled over the past two years.
Lale Akoner said: “The growing confidence in China reflects more than just enthusiasm around AI. UK investors are increasingly viewing China as a market with long-term growth potential in its own right. While the US remains one of the most important overseas markets for investors, the gap between expectations for US and Chinese stock-market returns has narrowed significantly over the past 18 months. At the same time, exposure to Chinese equities has almost doubled from a relatively low base.
“This suggests investors are becoming more open to finding opportunities beyond traditional markets and are taking a broader view of where future growth could come from.”
AI optimism cools as UK investors become more selective
Even as conviction in China grows, optimism about AI stock prices is cooling. The share of UK retail investors expecting AI-related stocks to rise has fallen from 59% in Q2 2025 to 47% a year later, while the share expecting them to decline has climbed from 7% to 14%.
Despite this moderation, UK investors continue to see opportunity across the AI value chain. When asked which part of the AI market is most likely to produce the strongest investment returns over the next five years, 31% selected large technology platforms integrating AI, followed by 28% who selected cybersecurity companies benefiting from AI demand. Specialised AI-first companies and AI software and applications companies were each selected by 26%, while 25% selected cloud and infrastructure providers and 22% selected semiconductor and chipmaker firms.
Lale Akoner continues: “The decline in expectations for AI-related stock prices suggests investors are becoming more selective rather than less optimistic about AI itself. A year ago, much of the excitement was focused on a handful of well-known AI winners. Today, investors appear to be looking more broadly across the sector, including cybersecurity, software, cloud computing and specialist AI companies.
“That’s a sign the market is becoming more mature. Investors still see AI as a major long-term opportunity, but they are paying closer attention to which parts of the industry are most likely to benefit as adoption continues to grow.”
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 14 - 29 May 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.
The figures and results presented in this survey are based on the responses of participants at the time the survey was conducted. They reflect responders’ opinions, views and perceptions and should not be interpreted as investment advice or a guarantee of future performance. Percentages and results may not be representative of the broader population and are subject to change as market conditions and sentiment evolve.
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