- The top 10 is split equally between US and UK-listed stocks
- Some of the Magnificent Seven were less popular during the year
- Investors found ways to get indirect exposure to bitcoin via the stock market
- Classic income stocks remained in vogue
“Investors continue to show a keen interest in opportunities Stateside, with half of the top 10 most popular stocks among AJ Bell DIY investors being listed in the US,” says Dan Coatsworth, investment analyst at AJ Bell.
“Nvidia topped the list as investors sought ways to play the AI theme, which has gone from strength to strength. The chip specialist continued to churn out good news and analysts raced to upgrade earnings forecasts again and again. The more the share price went up, the more people showed interest as FOMO (fear of missing out) took hold, and that created further buying in the shares. For the year to 6 December, Nvidia’s share price increased by 188%.
“It helped that Nvidia continued to under-promise and over-deliver, beating earnings and revenue expectations for each of the four quarters reported during the year.
Magnificent Seven
“Apart from Nvidia, Microsoft was the only other company from the so-called Magnificent Seven group of big tech names to appear in the top 10 most popular stocks with AJ Bell customers in 2024.
“Amazon narrowly missed a spot on the list and Meta wasn’t too far behind. However, Apple was firmly out of favour and was one of the stocks with the biggest net sells on the investment platform. Alphabet and Tesla also lost their charm with AJ Bell customers. This suggests investors are being more discerning with their exposure to the tech sector and no longer assume that biggest equals best.
Indirect exposure to bitcoin
“Donald Trump’s reappointment as US president sent people scrambling to own bitcoin in anticipation of a government that favoured cryptocurrencies.
“Bitcoin cannot be held in an ISA or pension so investors found alternative ways to get exposure via listed companies. The two most popular routes among AJ Bell customers were shares in MicroStrategy, which has a large investment in bitcoin and whose share price is highly linked to the crypto’s value, and bitcoin miner CleanSpark.
“The other US-listed stock making the top 10 was Berkshire Hathaway, best known as Warren Buffett’s investment vehicle. It’s often considered as a play on the US economy, which has proved to be resilient in 2024.
Classic income stocks
“The bulk of the UK stocks on the list are names typically favoured by people in retirement relying on their investments to generate an income. Legal & General, Phoenix and M&G all trade on a prospective dividend yield above 9% while BP yields 6.2%. Investors looking for income are naturally drawn to either the highest yields or names that have earned a reputation as being reliable dividend payers over the years.
“That leaves Applied Nutrition, which has only recently joined the stock market. IPOs (initial public offerings) have been relatively scarce this year and the protein powder specialist was one of the largest names to join the London Stock Exchange. Investors love new ideas and this one has captured the imagination of many people.”
