JP Morgan says everyday investors appear to be profiting from some of the most popular artificial intelligence stocks. JPMorgan’s Peng Cheng said retail traders poured nearly $450 million into individual stocks last week, excluding outflows. Cheng mentioned the continued focus on technology but highlighted the changes that are happening to some specific names getting these funds. JPMorgan found that Nvidia, Advanced Micro Devices and Super Micro Computer were among the stocks with the largest net retail outflows this week. All three stocks have risen over the past few months due to their ties to artificial intelligence, so it seems likely investors will be taking profits as the market wonders how much further these stocks can rise. JPMorgan found that NVDA AMD, SMCI 1Y mountain Nvidia, Advanced Micro Devices and Super Micro Computer, 1Y Nvidia saw the largest net outflows of any stock last week, with these investors selling more than $5 billion. The company said it had net retail outflows of more than $800 million during the period, while investors sold up to $301 million worth of Super Micro stock. To be sure, Wall Street thinks the group will be divided going forward. Analysts surveyed by LSEG on average expect Nvidia and AMD’s stock prices to rise by more than 5% and 6% respectively, while Super Micro’s stock prices are expected to fall by about 10% from current levels. All three earn an average analyst buy rating. In addition to artificial intelligence stocks, Tesla was one of the top-selling stocks this week, with net retail outflows exceeding $300 million, according to JPMorgan. “Seven Heroes” shares are up more than 5% this week, but are still down about 30% this year. While most on Wall Street has a hold rating on Tesla, analysts on average believe the stock will rebound about 15% over the next 12 months, according to data from the London Stock Exchange (LSEG). As the average investor turns their attention to these stocks, they appear to be shifting their investments to a large-cap tech stock with a less-than-stellar recent track record: Apple. JPMorgan Chase found that Apple was the most purchased stock by ordinary investors this week, with a turnover of more than $1.4 billion. Shares are down nearly 1% this week and will fall 11% in 2024. But analysts expect improvements to come. In addition to giving it a buy rating, analysts polled by the London Stock Exchange on average expect the stock to rise more than 17% next year.
