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Retail AI Investors Stay Bullish on AI Stocks, Motley Fool Survey Finds

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  Published in Stocks and Investing on Friday, December 12th 2025 at 18:07 GMT by stacker

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Retail AI Investors Stay Bullish on AI Stocks, Motley Fool Survey Finds

A recent survey by The Motley Fool—the investment‑advice website that has long been a barometer for retail investor sentiment—has revealed that the enthusiasm for artificial‑intelligence (AI) equities has not waned. Published on MSN’s technology portal on October 23 2024, the report reports that a majority of U.S. retail investors remain bullish on AI‑related stocks, even as the broader market wrestles with post‑pandemic volatility and shifting interest‑rate expectations.

The Survey at a Glance

The Motley Fool survey canvassed more than 1,500 U.S. retail investors who actively trade or hold a portfolio of stocks. The poll was conducted over a two‑week period in September and asked participants to rate their confidence in AI companies on a scale of 0 to 10, as well as to indicate their expectations for the next 12 months. Respondents were also prompted to identify which AI‑heavy stocks they currently hold or plan to buy.

According to the report, 70 % of respondents indicated a bullish outlook on AI equities, compared to 62 % in the preceding survey conducted in March. When asked to set a target price for the most favored AI stock, the average estimate rose from $1,400 in March to $1,650 in September. This uptick reflects investors’ growing optimism about the monetization potential of generative AI, machine‑learning platforms, and AI‑augmented infrastructure.

Which AI Stocks Are Leading the Charge?

The survey’s “favorite AI stocks” list is heavily weighted toward a handful of high‑profile names that have benefited from the explosion of AI tools in both consumer and enterprise settings.

NVIDIA tops the list by a wide margin, as investors point to its leadership in GPU technology that powers large‑language models and deep‑learning workloads. Meta’s ambitious AI agenda—particularly its “Foundation Model” platform—has convinced many that the company can re‑capture market share in the social‑media space. Alphabet’s integration of AI across search, advertising, and cloud services is seen as a moat that protects its core businesses. Microsoft’s Azure AI suite is viewed as a key driver for its cloud expansion, while Tesla’s autonomous‑driving stack has been hailed as a potential disruptor of both transportation and energy markets.

Why the Bullish Sentiment Persists

The survey highlighted several themes that explain the sustained optimism:

1. Rapid Commercialization of Generative AI
   Retail investors cite the commercial rollout of large‑language models and image‑generation tools as a pivotal moment. Many respondents believe that generative AI will become a standard feature across software products, thereby boosting revenue streams for incumbents that have already integrated these capabilities.

2. Strategic Partnerships and Alliances
   Investors note that major AI firms are partnering with each other—Microsoft and OpenAI, Google and DeepMind, NVIDIA and Alphabet—to accelerate development. These collaborations are perceived as creating a competitive advantage that is difficult for newcomers to replicate.

3. Positive Earnings Momentum
   The last quarter saw several AI‑heavy firms report earnings beats, with NVIDIA reporting a 120 % year‑over‑year revenue jump and Microsoft’s AI‑driven Office suite generating a 30 % increase in subscriptions. The sentiment section of the survey indicates that earnings momentum is a primary factor behind bullish expectations.

4. Favorable Macro Outlook for Tech
   While overall market volatility remains a concern, investors still view tech growth as resilient. The continued push for cloud computing, cybersecurity, and edge AI is considered to be a hedge against macro‑economic uncertainty.

Risk Factors and Caveats

Despite the optimism, the survey also highlighted several risks that could temper gains:

• Valuation Concerns
  Many respondents acknowledge that AI stocks are trading at high multiples relative to historical averages. A sudden shift in risk appetite could trigger a sell‑off.

• Regulatory Headwinds
  The U.S. and EU are intensifying scrutiny of AI safety, privacy, and antitrust issues. New regulations could impose compliance costs on the biggest players.

• Competitive Landscape
  Startups and smaller firms are making rapid strides in niche AI applications, potentially eroding the market share of incumbents. The survey mentions that investors keep an eye on emerging competitors such as Cohere and Anthropic.

• Macro‑Economic Shocks
  Rising interest rates and inflation could lead to a broader rotation away from growth‑heavy tech stocks toward value sectors.

Market Context and Historical Performance

The bullish sentiment identified in the survey aligns with the recent performance of AI‑heavy ETFs. The iShares Advanced Technology ETF (IAT) and the Global X Artificial Intelligence & Technology ETF (AIQ) have outperformed the S&P 500 by 12 % and 9 % respectively over the last six months. Even the Nasdaq‑100, heavily weighted with tech names, has delivered a 15 % return in the same period.

The survey’s findings also echo the Motley Fool’s own AI stock‑picking editorial, which was published a few weeks prior. In that article, the firm’s analysts recommend a diversified portfolio of high‑growth AI stocks, emphasizing long‑term positioning over short‑term trading. The MSN article links to the Motley Fool piece for readers who want to dive deeper into specific investment recommendations.

What Does This Mean for Retail Investors?

The key takeaway is that retail investors are still strongly bullish on AI equities, viewing them as the next wave of transformative technology. However, the high valuations and regulatory uncertainties mean that investors need to balance optimism with caution. A disciplined approach that includes diversification across sub‑sectors—GPU hardware, cloud AI, AI‑driven consumer products, and autonomous vehicle technology—can help manage risk.

For those considering entry into the AI space, the survey suggests that the current market offers a mix of high‑profile, established names and emerging disruptors. Investors may want to monitor earnings reports, product launches, and regulatory developments to adjust exposure in real time.

Bottom Line

The Motley Fool’s latest retail investor survey, published on MSN, confirms that enthusiasm for AI stocks remains robust. With an average target price rise for NVIDIA and other giants, and a majority of respondents maintaining a bullish stance, AI is poised to remain a centerpiece of retail investment portfolios. Nevertheless, investors should remain aware of valuation pressures and regulatory headwinds that could moderate growth. As the AI industry continues to mature, the sentiment captured in this survey offers a useful snapshot of how retail investors are positioning themselves for what many view as the next era of technological disruption.