Singapore retail investors more bullish on AI stocks than global peers: eToro survey

[SINGAPORE] Retail investors in the Republic are more bullish on technology and artificial intelligence stocks than their global counterparts. A new survey by trading platform eToro found that more than half of Singapore respondents expect AI stock prices to rise in 2026, compared with 44 per cent globally.

However, they are divided on which AI market segment will deliver the strongest returns over the next five years. The survey revealed that 40 per cent favour semiconductor and chipmaker firms, followed by large technology platforms integrating AI (39 per cent) and specialised AI-first companies (35 per cent).

The stocks referenced are international equity offerings, including those listed on the stock exchanges of New York, London, Hong Kong and Dubai. eToro did not include Singapore Exchange-listed stocks in the survey, as they are currently not available on its platform – but it plans to offer them later this year.

The platform’s Q2 2026 Retail Investor Beat survey, published on Tuesday (Jul 7), polled 11,000 retail investors across 13 countries including Singapore, the UK, US and Australia. Of these, 1,000 respondents were from Singapore.

Conducted in May this year, the survey defined retail investors as self-directed or advised investors who held at least one investment product, including shares, bonds and funds.

According to eToro, the typical Singaporean retail investor in 2026 has more than three years of investment experience, with S$50,000 to S$200,000 in investments and a portfolio anchored in cash, domestic equities and fixed income, with significant exposure to financial services and technology.

Yaki Razmovich, managing director of eToro Singapore and Asia, told The Business Times that what struck him most in the survey was respondents’ confidence in the country’s AI prospects.

Over one in four Singaporean investors believe their home country is best positioned to lead the global AI race, placing the city-state third behind global superpowers US (56 per cent) and China (52 per cent).

“This high level of confidence is backed by the government investing in AI, attracting top AI firms like Micron to grow in this country and upskilling the workforce to be AI-bilingual,” said Razmovich.

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He added that Singapore’s strong performance in global AI readiness rankings has also contributed to this confidence, noting that the city-state ranks first in Asia-Pacific and second globally for readiness.

Investors bet on tech

This optimism is reflected in local retail investors’ continued preference for technology stocks, with the sector remaining the most likely area where investors intend to increase their exposure.

Technology has held the top spot for four consecutive quarters, with 27 per cent of investors identifying it as their preferred investment sector.

Existing tech holdings have also risen steadily, with 57 per cent of Singapore retail investors holding investments in the sector in Q2, up from 55 per cent in Q1 and 54 per cent in Q4 2025.

In Singapore, the proportion of retail investors expecting the “Magnificent Seven” stocks – Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla – to outperform the broader market also rebounded to 45 per cent in Q2 2026, from 41 per cent in Q1. This returned to levels last seen in Q4 2025.

Zavier Wong, eToro market analyst, said the recovery in investor sentiment was significant. He noted that the tech sector delivered a remarkable run despite a backdrop of tariff uncertainty and geopolitical volatility.

“With SpaceX freshly listed and OpenAI and Anthropic both signalling public debuts later this year, there is a visible pipeline of new names coming to market that will continue to attract investor attention,” he said.

Wong added that more leading AI players are establishing a presence in Singapore, using the city-state as an operational base.

“Just take OpenAI’s commitment of S$300 million. The talent is here, the capital access is here, and sitting between the two dominant AI powers – US and China – gives Singapore a role (that is) hard to replicate anywhere else in the region,” he said. This, he added, helps explain the strong conviction among local investors.

Such confidence has also translated into steady investment behaviour despite ongoing geopolitical turbulence.

In Q2 2026, 36 per cent of Singaporean retail investors increased the amount they contributed to their portfolios, while 58 per cent maintained existing allocations. The figures were largely unchanged from Q1, when 36 per cent increased contributions and 57 per cent held steady.

“Volatility has not deterred Singaporean investors from participating in markets,” said Razmovich. “What we have seen instead is thoughtful rebalancing, and as a result, more investors have increased their allocations this quarter than decreased them.”

When asked what would give them greater confidence to increase their stock allocations, nearly half of retail investors in Singapore cited improving economic conditions (44 per cent) as the key factor.

Reduced geopolitical uncertainty and more attractive market valuations following a correction were also among the top considerations, with 37 per cent of investors citing each factor.