Investors Shifted Capital Toward AI Infrastructure
Retail portfolios moved away from software holdings in the third quarter of 2026 as interest in infrastructure grew.
Updated on Oct. 7, 2026 in Investing
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Retail investors on the eToro platform significantly reallocated their assets during the third quarter of 2026, favoring infrastructure companies over software firms. This rotation highlights a growing focus on the hardware and materials essential to powering artificial intelligence development.
Why it matters
Investors are increasingly prioritizing companies involved in rare earth materials, energy infrastructure, and communications equipment. This shift reflects a strategic move toward sectors that support the physical requirements of artificial intelligence, alongside a more selective approach to software firms based on durable revenue growth.
Platform data shows a 104% increase in users holding MP Materials and an 82% increase in AppLovin holdings during the third quarter of 2026. Conversely, user holdings for Wix.com and e.l.f. Beauty saw declines of 41% and 43%, respectively.
The players
eToro
A global social trading and investment platform that provides data on retail investor behavior and portfolio trends.
The details
Retail investors are rotating away from software and consumer brand equities to capitalize on the physical backbone of the AI industry. By increasing positions in rare earth materials and energy infrastructure, investors are hedging toward companies that provide the necessary inputs for technology expansion. This strategy replaces broader software bets with a focus on specific infrastructure components believed to offer more durable revenue growth.
Timeline
Q1 2026 saw ServiceNow ranked as the third top riser among investors.
Q2 2026 saw ServiceNow rank as the second top riser.
Q3 2026 marked the period when retail investors rotated holdings into AI infrastructure.
Money Landscape
This activity follows the documented trend of investors realigning portfolios to prioritize the physical infrastructure needed for artificial intelligence. It marks a departure from earlier quarters where software companies dominated the investor preference rankings.
Investors should review their current portfolio exposure to ensure it aligns with their long-term growth and risk tolerance, especially regarding sector concentration. Discuss any major shifts in asset allocation with a qualified financial professional before rebalancing your holdings.
The takeaway
The latest trend shows a clear movement of retail capital toward the foundational components of the artificial intelligence boom. Review your own investment accounts to verify that your current sector weighting matches your risk profile and long-term financial goals.
Further reading
For more on managing a diversified portfolio, see our Investing section.
Source note: This article includes information reported by Nine O' Clock - first exclusively daily publication to appear in English language in Romania.
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