10 Stocks Retail Investors Craved in 2024 for Big Gains
Retail investors saw impressive returns in 2024, driven by tech stocks and a strong market appetite, despite some uncertainties ahead.
Retail Investors, Tech Stocks, Nvidia, Tesla, Market Trends, 2024
New York: Retail investors had a fantastic year in 2024, sticking with big tech names that really paid off. Companies like Nvidia and Tesla were at the forefront, bringing in huge profits and excitement around AI advancements.
According to Vanda Research, self-directed retail investors poured about $265 billion into U.S. markets this year. While that’s a bit less than previous years, it still shows a strong interest in investing post-COVID-19.
The top six stocks that attracted the most retail money were all tech giants: AMD, Nvidia, Apple, Palantir, Tesla, and Amazon. Together, they pulled in a whopping $67.7 billion in retail inflows. Interestingly, Nvidia has now surpassed Tesla as the favorite among retail investors.
Nvidia alone attracted $29.8 billion in net inflows this year, a big jump from last year’s $11.4 billion. Meanwhile, Tesla saw its inflows drop significantly from $48 billion to $14.7 billion.
Despite the drop, Tesla still holds the top spot in retail portfolios, making up about 10.58% of average holdings, just ahead of Nvidia at 10.33%.
The other popular stocks were more index-based, linked to trends like AI, including SOXL, QQQ, TQQQ, and SPY. Marco Iachini from Vanda Research noted that 2024 was a great year for retail investors, thanks to their loyalty to tech stocks.
And it really paid off! The average retail portfolio saw a 40.74% increase this year, making it one of the best performances since 2014.
Looking ahead, it’s uncertain if retail investors will keep riding this wave in 2025. The incoming Trump administration has hinted at business-friendly policies, which could help, but the market outlook is still a bit shaky.
Fed officials are now predicting two rate cuts next year, down from four, as they keep an eye on inflation. This uncertainty could affect market performance as we head into January.
Despite some market dips in December, experts believe there are still opportunities in individual stocks, especially in sectors like EVs, AI, and healthcare. Michele Schneider from MarketGauge sees potential growth, but warns of risks like tariffs and inflation.
Interestingly, Schneider’s top stock picks for 2025 aren’t the usual retail favorites. They include companies like AbbVie, IBM, and Coinbase. Who knows, maybe they’ll catch the attention of retail investors down the line!
StockStory is all about helping individual investors beat the market, so keep an eye out for more insights!
Brian Sozzi is Yahoo Finance’s Executive Editor. Follow him on X @BrianSozzi and on LinkedIn. Got tips on deals or anything else? Email brian.sozzi@yahoofinance.com.
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