eToro reports record retail buying in semiconductor stocks in May 2026
In brief
- eToro US platform achieved record retail buy volume in May 2026, surpassing all prior months
- PHLX Semiconductor Index gained 69.1% combined in April and May 2026
- Micron surged 187.4% and SanDisk climbed 166.8% during the two-month window
- Retail semiconductor exposure potentially shifted from 5% to 15-20% through appreciation and buying
- Analysts warn AI chip rally approaches late-cycle territory, raising volatility concerns
Retail Buying Hits New Peaks
Retail buy volume on eToro's US platform in May 2026 surpassed all other months this year, according to data from the trading platform. The timing coincided with explosive gains across the semiconductor sector. The PHLX Semiconductor Index posted a combined gain of roughly 69.1% across April and May, with individual stocks delivering even steeper returns.
Micron's stock surged 187.4% during that same window, while Sandisk climbed 166.8%. The most purchased semiconductor stocks on eToro included Nvidia, Micron, Sandisk, Intel, and AMD. Retail traders piled into Micron, Nvidia, and AMD at historic levels last month, driving transaction volumes that set new records for the platform.
Concentration Risk and Momentum Concerns
The rally has created a concentration problem. A diversified portfolio that was 5% semiconductors six months ago might now be 15% or 20%, purely from price appreciation and additional buying. That shift happens fast—without investors necessarily rebalancing.
Bret Kenwell, an investment analyst at eToro, described the current environment as "a heyday for retail investors," but warned about downside risk. Analysts warn the AI chip rally may be approaching late-cycle territory, a phase where momentum can reverse sharply. Context matters here: the PHLX Semiconductor Index's full-year return in 2023, which was considered a blockbuster year for chip stocks, was around 65%. May 2026 alone saw similar gains compressed into two months.
Retail portfolios built on momentum often face the sharpest drawdowns when sentiment shifts. The question isn't whether the rally will end—it's when, and how much pain unbalanced positions will absorb.
