Retail investors enjoyed another breakout year by sticking with tried-and-true large-cap tech names that posted big profits and promised breakthroughs in artificial intelligence.

Vanda Research the year is estimated to end with about $265 billion in net new inflows into US markets by self-directed retail investors. While that’s $25 billion less than the previous three-year average, according to Vanda Research data, it’s still within the post-Covid-19 range, indicating a healthy appetite for the average investor to engage with the markets.

The six corporate tickers with the most inflows from retail investors were a who’s who of the technology boom: AMD (AMD), Nvidia (NVDA), apple (AAPL), Palantir (PLTR), Tesla (TSLA), and Amazon (AMZN). Those five names generated $67.7 billion in total retail receipts this year. Nvidia overtook Tesla as the most popular stock among retail investors, at least judging by entries.

Nvidia has raked in $29.8 billion in net retail receipts this year, according to Vanda Research findings, up from $11.4 billion last year. Tesla’s retail receipts fell to $14.7 billion from $48 billion in 2023.

However, Tesla still beat out Nvidia as the top holding in retail investors’ portfolios, accounting for an average portfolio weighting of 10.58% compared to Nvidia’s 10.33%.

The other four top tickers were more index-based trades applied to popular themes such as AI: Direxion Daily Semiconductor Bull 3X Shares (SOXL), Invesco QQQ Trust (QQQ), ProShares UltraPro QQQ (TQQQ), and SPDR S&P 500 (SPY).

“2024 was an eventful year for the markets,” said Vanda Research Senior Vice President Marco Iachini. “For the average retail investor, it was another great year of portfolio performance. Loyalty to tech names paid off.”

Indeed, this technological loyalty paid off.

Vanda Research estimates that the average retail portfolio is up 40.74% this year, the second-highest return since 2014. Only 2023’s 41.94% return was better over that 10-year period.

On a flow-adjusted basis, Vanda Research noted that this would mark the second time that retail investors have outperformed the S&P 500 (^GSPC) in consecutive calendar years and the first time since 2014 that the non-institutional crowd beat the Nasdaq Composite (^IXIC).

Whether the good times for retail investors will continue into 2025 is anyone’s guess.

On the bright side, the incoming Trump administration has promised business-friendly policies such as cut public spending through the Department of Government Efficiency (DOGE) led by Elon Musk and expanding tax breaks.

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“I’m not saying it’s perfect, but I’m saying the chances of us doing very well over the next few years are significant.” Joe Mogliaformer CEO of TD Ameritrade, told Yahoo Finance Opening offer podcast (listen below).

But markets are poised to enter January with a whimper despite Trump’s potential pro-growth policies as the outlook for Fed policy has turned increasingly uncertain.

The consensus among Fed officials is now two rate cuts next year after the December meeting, down from the four previously expected in September, as the monetary policy body remains concerned about the inflationary outlook. The outlook for inflation is further clouded by possible moves by the incoming Trump administration, such as possibly inflationary tariffs in China.

In a new interview at Yahoo Finance’s Opening OfferSan Francisco Fed President Mary Daly did not rule out a possible rate hike.

The S&P 500 and Dow Jones Industrial Average are down 2% and 5%, respectively, in December. The Nasdaq Composite is up 1.4%.

Market leader Nvidia is down 1% in December.

“The stock market in 2025 is likely to experience fluctuations, but significant opportunities are seen in individual stock picking, particularly in sectors such as electric vehicles, artificial intelligence, healthcare and quantum computing,” he said. said the chief strategist at MarketGauge. Michele Schneider he told Yahoo Finance. “Tax cuts and deregulation could spur growth, although tariffs and inflation remain risks. The year may start under pressure, but rebound towards the middle and end of the year with modest gains, with a potential stagnant environment in place until mid-2026.”

None of Schneider’s top stock picks for 2025 would qualify as a typical retail investor favorite: AbbVie (ABBV), Kratos (SOMEONE), International Business Machines (IBM), Salesforce (CRM), Coinbase (COIN), chewable (COP), Ulta Beauty (ULTA), Alibaba (baby), and Rivian (RIVN).

But hey, maybe they’ll catch the eye of retail investors.

Brian Sozzi is the executive editor of Yahoo Finance. Follow Sozzi on X @BrianSozzi and forward LinkedIn. Advice on deals, mergers, activist situations or anything else? Email [email protected].

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