On May 6, new data emerging from the eToro investment platform revealed that nine of the top ten invested stocks by Malaysians in April 2020 are technology companies. There was a 19% increase in Malaysian investor buys compared with March.
In that context, the Tesla stock became the favourite choice on eToro rising from 4th to 1st spot last month.
Additionally, Advanced Micro Devices (AMD) remains highly popular in April, with a 114% surge in trading. Investors discovered that amid economic lockdowns, there would be an increase in demand for the firm’s graphics processing units (GPUs) and central processing units (CPUs) that are used in data centers and laptops.
A Senior Market Analyst at eToro, Nemo Qin, said:
“During the economic downturn, investors prefer to invest in consumer staples or dividend aristocrats than other sectors. However, it seems that the interest in the technology sector has not only remained; but technology stocks have increased in popularity among investors during the pandemic.”
Analysts and commentators believe that the current popularity and high demand for tech investment will remain for the rest of 2020.
Reasons for tech stocks popularity
There are several reasons why technology stocks have become popular among investors. In most cases, investors prefer these stocks since the companies behind them have tested and proven successful business models. Moreover, they have good financial statuses. These factors support the companies’ development and business operations.
Also, people are spending more time and resources on technology products. Whether it is e-commerce, e-Learning, streaming services, working from home, online fitness, video games, and many other uses of technology have surged in the current lockdowns.
Companies like Zoom and Netflix are now recognizing these trends and exploiting the opportunities to generate more revenue and income. The data used represents the highest bought stocks by Malaysian investors on the eToro platform in March 2020. It is accurate as of May 1.