Retail Investors Shifted Capital Into AI Infrastructure
Investors pivoted away from software holdings toward infrastructure assets during the third quarter of 2026.
Updated on Oct. 7, 2026 in Investing
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Global retail investors increased their exposure to infrastructure, energy, and materials stocks in the third quarter of 2026. This rotation comes as market participants reallocate capital to support the hardware foundations of artificial intelligence development.
Why it matters
The shift signals a more selective approach toward software investments, with investors increasingly prioritizing firms that demonstrate durable revenue growth. This move highlights a broader trend of capital flowing toward the physical infrastructure and resources required to sustain AI expansion.
eToro saw a 104% rise in users holding MP Materials and an 82% increase for AppLovin. Conversely, holders of Wix.com and e.l.f. Beauty dropped by 41% and 43%, respectively.
The players
eToro
This global social trading platform provides investment data and market access for retail users.
MP Materials
The company operates rare earth mining and processing facilities critical to the production of high-performance magnets.
AppLovin
This technology company provides a software platform for mobile app developers to monetize and grow their businesses.
SpaceX
This aerospace manufacturer and space transportation company is involved in satellite communications infrastructure.
The details
Investors are actively offloading shares in software and consumer brand companies to bolster positions in rare earth materials and communications equipment. In Romania, this strategy included a 30% increase in SpaceX holdings, while investments in Microsoft and Palantir were pared back.
Timeline
Q1 2026: ServiceNow ranked as the third top riser among investors.
Q2 2026: ServiceNow reached the second position in riser rankings.
Q3 2026: Retail investors rotated their capital into AI infrastructure.
Market Dynamics
This rotation into rare earth materials and hardware reflects a strategic adjustment within broader macroeconomic cycles that favor infrastructure over software-heavy portfolios. The move aligns with long-term capital allocation shifts as investors pivot from speculative software growth to foundational assets.
Retail investors may see volatility in their portfolios if they follow the trend of moving capital out of high-growth software and into infrastructure stocks. Monitoring these shifts is essential for rebalancing assets and aligning personal savings strategies with changing sector performance.
The takeaway
Investors are prioritizing hardware-focused assets over software as the infrastructure required for artificial intelligence becomes a central market theme. Reviewing your own portfolio for over-exposure to software might be a prudent step following this clear shift in retail sentiment.
Further reading
Explore more trends in Investing to understand how global capital moves.
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