Key facts
- Retail investors' net buying of US equities reached $9.1 billion last week.
- Semiconductor stocks attracted $2.6 billion in retail net inflows.
- Neocloud stocks saw $700 million in retail net buying.
- Institutional investors are shifting towards defensive assets.
- CoreWeave's stock plunged amid concerns about its debt position.
Retail investors are increasing their exposure to AI-related stocks, including semiconductors and neoclouds, while institutional investors are adopting a more defensive posture. Last week, retail investors' net buying of US equities reached $9.1 billion, the highest in 15 weeks, with significant inflows into AI plays. This contrasts with institutional traders who are rotating towards defensive assets due to inflation concerns and bond market volatility. Despite a sharp sell-off in neocloud firm CoreWeave due to debt concerns, retail investors reportedly bought a record amount of its stock, while institutional options flows in AI baskets have deteriorated.