UK retail investors double down on US tech despite tariff jitters
Despite geopolitical headwinds and market volatility, UK retail investors ramped up their exposure to US technology stocks in April, with Nvidia, Palantir and Tesla topping trading charts across major UK platforms.
On AJ Bell, Nvidia emerged as the second most traded stock, trailing only BP.
Tesla and Amazon also secured sports in the top ten, indicating sustained interest in US tech giants.
Notably, Nvidia and Rolls-Royce were the most sold stocks on the platform, suggesting active profit-taking strategies among investors.
Meanwhile, Saxo markets reported significant buying activity in US tech stocks, too, with Amazon, Alphabet, Apple, Meta, and Microsoft – all members of the so-called magnificent seven- leading the charge.
BP and Rolls-Royce were among the few UK stocks to break into Saxo’s top ranks, highlighting the dominance of US tech in investor portfolios.
Hargreaves Lansdown’s weekly snapshot indicated a blend of large-cap UK names, and US growth stocks attracting retail traders, with Nvidia and Tesla prominently featuring in trading volumes.
Nvidia, Palantir & Tesla
Nvidia’s stock experienced volatility in the month of April, influenced by escalating trade tensions and tariff announcements from the US administration.
The prospect of “reciprocal tariffs” on technology imports unsettled markets, with the chip giant particularly vulnerable due to its reliance on Taiwan Semicounductor Manufacturing Company for over 90 per cent of its production.
Yet, Nvidia remains a dominant force in the AI and data centre markets.
The big tech’s data centre business reported revenues of $35.6bn in its last quarter of 2024, driven by surging demand for generative AI and large language models (LLMs).
Its recent Blackwell GPU launch further solidified its leadership in AI workloads.
Meanwhile, Palantir Technologies also captured UK investor attention, with its stock surging to a new all-time high following robust fourth quarter earnings and an optimistic 2025 outlook.
The company reported a 36 per cent year over year revenue increase, driven by growth in both its US commercial and government segments.
Chief executive Alex Harp said these results were “driven by unrelenting AI demand that won’t slow down”.
Tesla’s stocks faced headwinds, declining approximately 30 per cent year to date, amid concerns over chief executive and controversial billionaire Elon Musk’s political involvement and disappointing Q1 earnings.
But, Musk’s announcement to step back from his political role and refocus on Tesla provided a temporary boost for the EV maker, with shares rising nine per cent following the news.
Analysts remain cautious about Tesla’s prospects. Julian Wheeler, partner at Shard Capital, commented: “We would caution buying Tesla and see benefits in releasing profits until it is valued approximately 40 per cent below the current price”.