The S&P 500 may keep rising to all-time highs — but Schwab (SCHW) investors keep buying. They’re loading up on favorite stocks including a less-obvious AI play.
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Driven by big buys of SoundHound AI (SOUN) plus Nvidia (NVDA) but also Tesla (TSLA), which lags the market, Schwab investors are net buyers of stock. The Schwab Trading Activity Index shows a higher exposure to stocks during the four weeks ended March 28.
“Buying was most pronounced within the information technology, health care, and consumer staples sectors,” Schwab said.
What Are Schwab Investors Buying?
Schwab investors are taking the opportunity to boost their positions in technology stocks. Big additions to portfolios include Nvidia, Apple (AAPL), Advanced Micro Devices (AMD) and Palo Alto Networks (PANW).
Nvidia is an obvious AI play by now. Shares are up more than 275% just since March. But Schwab investors are finding AI exposure more broadly. A less known AI stock is SoundHound AI.
SoundHound AI develops voice-based systems to provide spoken responses to customers and employees. With a market value of $1.6 billion, it’s not yet on the radar of many S&P 500 investors. Yet shares are up more than 67% from March.
And despite its popularity with Schwab investors, SoundHound AI is highly speculative. The company is seen losing another adjusted 28 cents a share in 2024. It lost 11 cents a share in 2023.
Not Giving Up On Tesla Yet
But investors aren’t just chasing hot AI and tech stocks. They’re also going after sinking shares of Tesla.
Tesla remains one of Schwab investors’ top buys despite it falling nearly 16% since March. Schwab investors are buying the stock in the wake of the company’s disappointing fourth-quarter report when profit missed forecasts by more than 4%.
But Schwab investors aren’t going overboard. The Schwab Trading Activity Index sits at 51.65. “This ranks ‘middle’ compared to historical averages,” Schwab said.
Stocks Schwab Customers Are Buying
Largest buys in March
| Company | Symbol | Stock % ch. since March | Sector |
|---|---|---|---|
| Nvidia | (NVDA) | 275.3% | Information Technology |
| Tesla | (TSLA) | -15.9% | Consumer Discretionary |
| Apple | (AAPL) | 14.3% | Information Technology |
| Advanced Micro Devices | (AMD) | 116.2% | Information Technology |
| Palo Alto Networks | (PANW) | 42.6% | Information Technology |
| Amazon.com | (AMZN) | 96.5% | Consumer Discretionary |
| Alphabet | (GOOGL) | 71.9% | Communication Services |
| Microsoft | (MSFT) | 70.2% | Information Technology |
| SoundHound AI | (SOUN) | 67.2% | Information Technology |
Sources: Charles Schwab, S&P Global Market Intelligence, IBD
Follow Matt Krantz on X (Twitter) @mattkrantz
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