JPMorgan notes retail investors are selling Microsoft and Palantir while increasing exposure to semiconductor ETFs like SOXX and SMH.
Retail investors are reducing holdings in software stocks, including Microsoft (MSFT) and Palantir (PLTR), after months of accumulation. Microsoft fell from the second-most-bought stock in April to the second-most-sold in May, according to a JPMorgan note.
In contrast, semiconductor stocks and ETFs like the iShares Semiconductor ETF (SOXX) and VanEck Semiconductor ETF (SMH) are seeing strong inflows. Retail trading volumes have risen 28% since mid-April, with retail favorites rallying 29% over the same period.
Retail activity now accounts for 20% of total US equity trading volumes, up from 15% a decade ago but below the 2021 peak of 24% during the meme stock frenzy.