Israeli Retail Investors Shift From Nuclear and Crypto to AI and Chip Stocks
Israeli retail investors are moving away from high-risk, speculative stocks such as small nuclear reactor companies, quantum computing, cryptocurrencies, and meme stocks, which were popular a year ago. Instead, they are increasingly investing in more stable sectors like semiconductor giants, artificial intelligence, and broad market ETFs. This trend emerges from an analysis by Calcalist, which examined the top ten stocks held by retail investors across six major Israeli investment houses: Meitav, IBI, Interactive Israel, Altshuler Shaham, Psagot, and Blink, comparing holdings from the first half of 2025 to the first half of 2026.
Retail investors have become a significant force in the Israeli stock market, with nearly one million active accounts, representing about 12% of trading volume. Despite their growing influence, most of their investments are concentrated in foreign markets, particularly in major U.S. technology companies. Nvidia stands out as the only stock consistently held across all six investment houses in both periods. ETFs tracking broad indices like the S&P 500 and Nasdaq also form the core of their U.S. market exposure.
The most notable shift is the increased focus on semiconductor stocks. While in 2025 only Nvidia and AMD were prominent, by 2026 investors added Micron, Intel, Sandisk, and leveraged ETFs on the sector, reflecting confidence in AI-driven demand for chips and memory. Psagot’s trade VP, Haim Kriheli, noted that ETFs play a central role in retail portfolios, with a growing preference for focused exposure to the U.S. market and technology sectors.
Conversely, speculative investments in “dream stocks” have largely disappeared. Companies like Oklo and Nano Nuclear (small nuclear reactors), Rigetti (quantum computing), BitMine (Bitcoin mining), Robinhood, and meme stocks have dropped out of top holdings after significant losses. Leveraged crypto-related funds and Bitcoin-linked instruments also saw steep declines, with average losses around 27% over the past year. This retreat follows a painful correction that has led retail investors to adopt a more mature, long-term investment approach.
Altshuler Shaham Trade CEO Avi Malka highlighted the shift from chasing hype to focusing on companies benefiting from long-term macro trends, especially AI and semiconductors. Interactive Israel CEO David Shem Tov emphasized that Israeli investors are becoming more knowledgeable and willing to take calculated risks in sectors they believe will drive future growth, while still maintaining exposure to broad market indices.
Academic research supports these observations, showing younger investors tend to take higher risks seeking yield, often driven by FOMO (fear of missing out). However, the current trend suggests a more cautious and strategic approach. The key question remains whether the current focus on AI and chip stocks will prove sustainable or become the next speculative bubble to burst.
