eToro data shows 60% growth in over-55s investing in popular AI stocks
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.
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.
Among 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 55s 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, Ben Laidler, Global Markets Strategist at eToro, said:
“It’s generally assumed that tech-savvy youngsters are the ones who are embracing AI but our data clearly shows that ChatGPT-mania has permeated all age groups, with a huge number of older investors getting involved.
eToro users nearing or already in retirement are now embracing AI-related stocks at a faster rate than their younger counterparts and by doing so bucking many tech-adoption stereotypes. It’s a reminder that technology is a key driver and opportunity for all.
As well as being increasingly investable, AI has the potential to play a central role in retail investor strategy. By enabling them to analyse vast amounts of data, generate new investment ideas, and overcome human biases, AI has the potential to tilt the scales more towards retail investors in the future.”