Energy Stocks Surge as Retail Investors Dump Consumer Names

Retail investors dumped consumer stocks and piled into energy names during the first quarter of 2026, according to fresh data from eToro. The brokerage tracked changes in stockholder counts across major names, revealing a dramatic shift toward commodities and AI-related plays.

Chevron led the pack with a massive 60% jump in retail holders. The oil giant benefited from U.S. policy changes in Venezuela plus rising crude prices tied to Iran-related conflicts. USA Rare Earth wasn’t far behind, posting a 59% surge in investor interest as supply constraints hit domestic rare earth production. ServiceNow grabbed attention with a 57% holder increase, while Western Digital saw 40% growth as both companies rode the AI infrastructure wave.

Commodities Rally Drives Interest

Freeport-McMoRan’s holder count jumped 43%. Gold and copper demand basically exploded during the quarter, pushing mining stocks higher across the board. Defense contractor AeroVironment saw 38% more investors pile in, probably betting on increased military spending.

But some names got crushed. BioMarin Pharmaceutical lost 25% of its retail holders, while cybersecurity firm Okta dropped 22%. Consumer-facing companies took it on the chin too – Under Armour and Chipotle Mexican Grill both saw reduced interest as investors worried about rising costs and weak demand forecasts.

“We’re seeing a structural shift toward assets with pricing power and limited supply,” said Lale Akoner, eToro’s Global Market Strategist. She thinks geopolitical risks are repricing strategic commodities like gold, energy, and critical minerals. It’s not just tactical moves anymore.

Tech Giants Hold Their Ground

The most widely held stocks didn’t change much at the top. NVIDIA stayed number one, with Tesla and Amazon right behind. Microsoft climbed from fifth to fourth place, gaining 11% more holders thanks to its AI push. Apple slipped to fifth spot, though it didn’t lose many investors.

Alphabet pretty much stayed put in the rankings. That’s kind of surprising given all the AI hype, but retail investors seem content with their Google positions.

Akoner said fears of a “SaaSpocalypse” haven’t killed software interest. Instead, retail investors are getting pickier, focusing on companies that can either build AI tools or use them effectively. “Investors are concentrating capital in firms that facilitate AI development or operate at the application layer,” she said.

The energy sector’s comeback caught many by surprise. Chevron’s massive gain came as Iran tensions pushed oil prices higher and U.S. policy shifts opened new opportunities in Venezuela. The company didn’t provide specific production guidance, but investors clearly think higher prices will boost profits. Analysts have drawn connections to Bitcoin Security Flaws Spark XRP Trading amid evolving conditions.

USA Rare Earth’s surge reflects growing concerns about supply chain security. The company mines critical minerals needed for everything from electric vehicles to defense systems. With China controlling most global rare earth production, investors see domestic miners as strategic plays.

Mining stocks across the board benefited from commodity price increases. Freeport-McMoRan’s copper operations looked especially attractive as infrastructure spending picked up globally. Gold prices also supported the company’s precious metals business, though management hasn’t updated production targets.

Consumer stocks faced multiple headwinds during the quarter. Under Armour struggled with inventory issues and weak athletic wear demand. Chipotle dealt with rising food costs and slower traffic at its restaurants. Both companies cut their full-year guidance, spooking retail investors who’d been counting on post-pandemic recovery.

The defense sector’s gains reflected broader geopolitical tensions. AeroVironment makes drones and other military equipment that’s seeing increased demand from government contracts. The company’s stock price rose 15% during the quarter, attracting more retail attention.

ServiceNow’s massive holder increase came as businesses ramped up AI spending. The company’s enterprise software helps organizations automate workflows and manage IT operations. Recent partnerships with major cloud providers boosted investor confidence in its growth prospects.

Western Digital benefited from surging demand for data storage as AI applications require massive computing power. The company’s hard drives and solid-state storage devices are essential infrastructure for AI data centers. Management raised revenue guidance twice during the quarter. Market participants tracking US-Iran Talks Crumble, Bitcoin Tumbles 4% will find additional context here.

NVIDIA’s continued dominance among retail investors shows the AI boom isn’t slowing down. The chip giant’s graphics processors power most AI training and inference workloads. Despite some recent volatility, retail investors keep buying shares on any dips.

Microsoft’s climb to fourth place reflected strong Azure cloud growth and Office 365 adoption. The company’s Copilot AI assistant launched during the quarter, generating significant buzz among enterprise customers. Retail investors seem convinced Microsoft can monetize its AI investments effectively.

Akoner expects the shift toward strategic assets to continue through 2026. She sees retail investors becoming more sophisticated about geopolitical risks and supply chain vulnerabilities. Energy security and AI infrastructure remain top priorities for portfolio allocation decisions.

The quarter’s trading patterns suggest retail investors are thinking longer-term about structural changes in the global economy. Rising commodity prices, supply chain reshoring, and AI adoption are driving investment decisions more than traditional growth metrics.