According to an eToro survey, retail investors hold a seemingly contradictory view on technology stocks: they see artificial intelligence as the market's most promising long-term investment theme, yet view the overall technology sector as overvalued. Tech stocks are ranked as the highest-valuation group among 11 major S&P 500 sectors.
Despite these concerns, 33% of surveyed retail investors believe large tech platforms such as Microsoft, Alphabet, and Meta offer the most compelling opportunities within the sector. Additionally, nearly half of respondents are actively seeking to invest in AI-adjacent industries that have been overlooked by the market, betting that these companies will eventually benefit from AI development while maintaining strong fundamentals.