eToro report shows retail traders nearing retirement age are embracing AI stocks
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A recent report by eToro has said that retail investors nearing retirement age are investing in artificial intelligence stocks following the release of OpenAI’s ChatGPT. eToro also revealed that the number of investors aged above 55 years and investing in AI stocks had increased significantly more than any other group.
eToro shows retail traders are embracing AI stocks
ChatGPT was launched in November last year, and since then, there has been a rise in trading activity for AI stock. During the first quarter of 2023, investors aged above 55 years reported an increase of 60% in new positions created in AI stocks than in Q4 2022.
The age group aged between 18 and 34 reported a 41% increase, while those aged between 35 and 44 reported a 54% increase. C3.ai had the most significant growth in new positions created by those over 55 years, with a 22,000% increase.
The increase reported in this mature age group is three times that seen among other age groups. The other AI stocks that witnessed significant interest from mature traders include Intel, NVIDIA, and SentinelOne.
The Global Markets Strategist at eToro, Ben Laidler, commented on this development saying that while young and tech-savvy investors were the main adopters of AI, the sentiment had changed since the launch of ChatGPT. Now, all age groups are becoming more interested in AI.
“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,” Laidler said.
Interest in AI stocks on the rise
The Retail Investor Beat by eToro, surveying 10,000 retail investors across 13 countries, offered evidence of the new AI trend. Around 17% of the respondents aged above 55 years are planning to increase their investment in AI, with only 5% planning to lower their allocations in these sectors.
Nearly half of the demographic would prefer to invest in AI or machine learning to manage their portfolios over human fund managers. The success of the ChatGPT chatbot in the market witnessed a growth in the number of tools using artificial intelligence across multiple sectors of the economy.
Brokers are also looking to launch their chatbots to compete with ChatGPT. One of these is Tiger Brokers, which released an alternative to ChatGPT known as TigerGPT. The company said that TigerGPT was the first AI trading assistant that the industry would share.
Tiger Brokers has used the advanced AI capabilities offered by OpenAI to create its TigerGPT platform. The AI trading assistant leverages the comprehensive content library at the broker and the premium source access to offer fast and informative responses to users.
Some of the information users have shared includes data on the profiles of listed companies’ financial knowledge, materials on investor education, and insights on the market. The TigerGPT chatbot also saves users’ time and boosts efficiency through pre-investment research.
