Retail investors are chasing the rally in the stock market. Here’s exactly what they’re buying.

A white Tesla Model X drives down the highway, with blue skies in the background.

The Tesla Model X.Tesla

  • Retail investors are “aggressively” chasing the stock market rally, according to Vanda Research.

  • The buying has included both individual stocks and ETFs, suggesting that they are bullish on the broad equity market.

  • “The monthly net inflows into US equities are now averaging $1.4 billion per day, close to the all-time record,” Vanda Research said.

Retail investors are finally starting to buy into the stock market rally that began nine months ago and helped power the S&P 500 higher by nearly 30%.

According to a Thursday note from Vanda Research, retail investors are piling into both individual stocks and equity ETFs, suggesting that they are not only bullish on specific themes but are also getting more bullish on the broader stock market.

“The monthly net inflows into US equities are now averaging $1.4 billion per day, close to the all-time record of last March ($1.5 billion per day),” Vanda Research said. “While it may be difficult to see a further increase in the pace of cash equity purchases from these levels, there is still room for more speculative buying in the options space.”

Within the individual themes of the stock market, Vanda Research observed that a rotation appears to be picking up as retail investors shift their buying power away from artificial intelligence stocks and towards electric vehicle stocks, with the change likely being sparked by Tesla’s recent second-quarter delivery numbers.

“Retail investors often rotate between themes as they get excited by short-term trends, and the recent beat in Tesla deliveries could be the catalyst to drive an increase in exposure to other EV names,” Vanda Research said.

Retail demand for stocks like C3.ai is starting to wane, while a jump in buying pressure has recently been observed in EV names like Rivian, according to the note.

These are the top 10 stocks retail investors have been buying the most of over the past five days, according to Vanda Research.

10. Uber

Uber rider

Uber rider

Uber rider.Mario Tama/Getty

Ticker: UBER
Net Retail Purchases: $52.0 million

9. Micron Technology

Micron technology logo

Micron technology logo

In this photo illustration, the Micron Technology Corporation logo seen displayed on a smartphone.Igor Golovniov/SOPA Images/LightRocket via Getty Images

Ticker: MU
Net Retail Purchases: $56.3 million

8. Pfizer

Pfizer logo

Pfizer logo

Carlo Allegri/Reuters

Ticker: PFE
Net Retail Purchases: $62.1 million

7. Meta Platforms

Meta

Meta

Getty Images

Ticker: META
Net Retail Purchases: $62.9 million

6. Alphabet

Google

Tayfun Coskun/Anadolu Agency via Getty Images

Ticker: GOOGL
Net Retail Purchases: $66.4 million

5. Amazon

Amazon van.

Amazon van.

Dinendra Haria/SOPA Images/LightRocket via Getty Images

Ticker: AMZN
Net Retail Purchases: $135.7 million

4. Advanced Micro Devices

AMD CEO Lisa Su

AMD CEO Lisa Su

AMD CEO Lisa SuSteve Marcus/Reuters

Ticker: AMD
Net Retail Purchases: $211.2 million

3. Nvidia

Jensen Huang, CEO of Nvidia, reacts to a video at his keynote address at CES in Las Vegas, Nevada, U.S. January 7, 2018.

Jensen Huang, CEO of Nvidia, reacts to a video at his keynote address at CES in Las Vegas, Nevada, U.S. January 7, 2018.

Jensen Huang, CEO of Nvidia, reacts to a video at his keynote address at CES in Las Vegas, Nevada, U.S. January 7, 2018.Rick Wilking/Reuters

Ticker: NVDA
Net Retail Purchases: $233.9 million

2. Apple

iPhone 14

iPhone 14

Apple released the latest iPhone in September.Marc Asensio/Getty Images

Ticker: AAPL
Net Retail Purchases: $255.2 million

1. Tesla

A Tesla Model 3.

A Tesla Model 3.

A Tesla Model 3.David Zalubowski/AP

Ticker: TSLA
Net Retail Purchases: $1.2 billion

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Source: https://finance.yahoo.com/news/retail-investors-chasing-rally-stock-212836579.html