Q3 Top Stocks: UK retail investors buy the dip in leading semiconductor stocks and high-end fashion brands

• Semiconductors dominate the ‘top risers’ list with 5 of the top 10 coming from this industry
• UK retail investors bought the dip on struggling stocks such as Crowdstrike and Intel in Q3
• They also bought into Burberry and Lululemon following share price drops

UK retail investors bought the dip in several leading semiconductor stocks in Q3 while also buying into faltering high-end fashion brands, according to the latest quarterly stocks data from trading and investing platform eToro.

eToro looked at which companies saw the biggest proportionate change in holders in the UK, quarter-on-quarter (see table). Semiconductor firms and chip manufacturers, which have a vital role in training artificial intelligence models, dominated the top risers list in the UK. Leading the way was Broadcom, which saw a 25% rise in holders. Chipmakers ASML (+17%), Super Micro Computer (+17%) and Micron Technology (+15%) also saw significant jumps in UK holders, despite all three firms seeing their share price fall in Q3.

Investors also took the opportunity to buy the dip in other struggling tech firms. CrowdStrike was the overall top UK riser in Q3, with a 71% increase in holders, as the cybersecurity firm’s share price sank 40% after its software caused a worldwide computer outage. Meanwhile Intel also saw a 17% jump in holders in Q3. Intel’s shares are down 53% year-to-date, after a steep nosedive in August due to a disappointing earnings report that included the suspension of its dividend and mass layoff plans.

Along with chipmakers, UK investors pounced on upmarket fashion brands that took a share price hit in Q3. Burberry (+23%) was the fourth-highest riser as the British luxury fashion house dropped out of the FTSE 100 following a period of dwindling sales and managerial changes. Sportswear brand Lululemon was close behind, with a 19% increase in holders, as slowing sales growth prompted the firm’s share price to plunge 48% year-to-date.

Commenting on the data, eToro Market Analyst Sam North, said: “A clear trend we have seen since last year is the rising popularity of semiconductor stocks. The transformative potential of AI continues to dominate the business agenda, and UK investors are increasingly turning to the companies that these technologies are built on. Although Nvidia has dominated the headlines, its steep rise in valuation may be prompting investors to look at similar companies trading at relatively cheaper prices.

“Retail investors also went on a hunt for bargains this past quarter, snapping up stocks whose share prices have taken a big hit. The fact that many investors are able to look past short-term struggles at household names like Intel, Burberry and Luluelmon reflects a faith in these companies’ long-term prospects and enduring brand power. 

At the other end of the spectrum, social network Reddit was the top faller in the third quarter (-21%). Its share price dipped slightly in Q3, although early investors will have cashed in a healthy return given its overall strong performance since its March IPO.  Other fallers include high street retailer JD Sports, which despite its ‘ten-bagger’ status having delivered 10x returns over the last decade, has struggled to maintain its upward trajectory in recent years.

Sam North adds: “This quarter’s top fallers were a mixed bag. On the one hand, some investors took profits from Reddit, which has lost momentum in recent months. On the other hand, former FTSE favourites like JD Sports have also seen a sell-off as investors lose patience and look to reallocate into high-growth sectors like tech. Both the top risers and fallers highlight how retail investors are alert to market momentum and sector-specific news.”

“Being reactive to market changes is a valuable skill for any investor. Markets are dynamic, and the ability to quickly assess and adapt to new developments – whether in geopolitics, corporate actions, or economic data – can provide a significant edge in navigating volatility and seizing opportunities.”

Table shows which stocks have seen the biggest proportional increase and decrease in UK holders on the eToro platform globally quarter on quarter

The table compares data from the eToro platform on the final day of Q3 2024 with the final day of Q2 2024. The data refers to funded accounts of eToro users based in the UK.

The data in the table shows the 10 stocks which have seen the biggest proportional increase and decrease in holders based in the UK on the eToro platform quarter on quarter (Q3 vs Q2). As the vast majority of stocks traded on eToro are the real asset, this data does not include positions held as CFDs.

All data accurate as of after market close on Monday 30 September.