Retail investors nearing retirement age dive into AI stocks since ChatGPT launch, finds eToro data

• eToro platform data shows 60% growth in over-55s investing in popular AI stocks vs 41% growth for 18-34-year-olds
• C3.ai, Intel and NVIDIA see biggest QoQ jumps in opened positions amongst over-55s
• eToro Retail Investor Beat data finds 17% of over-55s upping allocation in sectors which stand to benefit from AI

April 19 2023, Retail investors aged 55 and over are embracing the AI revolution with open arms, with the numbers investing in AI stocks on the eToro platform growing at a faster rate than any other age group.

Since the launch of Chat GPT, at the end of November 2022, figures from the social trading and investing platform show that there has been a major increase in trading activity for popular AI stocks amongst older investors (see table). 

In Q1 2023, there was a 60% jump in over-55s opening positions in one of these stocks versus Q4 2022 – this drops to a 41% rise for 18-34-year-old users and a 54% rise for 35-44-year-old users. 

Amongst the stocks in the AI basket, by far the biggest growth in newly opened positions for over-55s was C3. ai, with 22,000% growth, approximately three times the growth rate seen with other age groups. C3. ai is one of a number of AI companies which has seen huge share price gains in 2023, with the stock up 106% year-to-date, explaining the staggering growth in eToro users holding the stock.

Over 55 s also flocked to Intel, with a 93% jump in newly opened positions quarter-on-quarter. Other stocks that saw increased interest amongst older investors were NVIDIA (91% growth in new positions) and SenintelOne (84% growth).

Figures from eToro’s latest Retail Investor Beat – a global survey of 10,000 retail investors across 13 countries – support the trend, revealing that a considerable number of over-55s are ready to integrate AI and machine learning into their investment approach.  Around one in six (17%) say they plan to increase investments in sectors that stand to benefit from AI, while just 5% say they are reducing allocation to such sectors.  Furthermore almost half (46%) of this age group would use AI or machine learning to manage their portfolio rather than a human fund manager. 

Commenting on the data, Callie Cox, US Investment Analyst at eToro at eToro, said: “AI isn’t just a ChatGPT phenomenon. Investors of all ages and demographics  are embracing opportunities to invest in AI, either through quickly growing startups or legacy tech companies. It’s an encouraging signal that the fascination around AI is here to stay, and people are looking for ways to incorporate disruptive technology into their daily routines.

There has been a lot of discussion around if robots will replace us, but our data shows that we may be asking the wrong questions. Investors are interested in using AI to help them make better decisions in their portfolios. It makes sense: people can use AI to analyze vast amounts of data, generate new investing ideas and overcome human biases. AI technology could ultimately level the playing field between Wall Street and Main Street.”

Table 1: Growth in newly opened positions in Q1 2023 vs Q4 2022 amongst eToro’s global user base

ENDS

Notes to editors

Platform data
Data on growth in newly opened positions on the eToro platform was taken on Tuesday 4th April 2023.

About the Retail Investor Beat
The Q1 2023 Retail Investor Beat was based on a survey of 10,000 retail investors across 13 countries and 3 continents. The following countries had 1,000 respondents: UK, US, Germany, France, Australia, Italy and Spain. The following countries had 500 respondents: Netherlands,  Denmark, Norway, Poland, Romania, and the Czech Republic. The survey was conducted from 20th February – 9th March 2023 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. Complete country-by-country data on change in retail investors holding different asset classes between Q1 2022 and Q1 2023 is available upon request

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