Investors Shift Focus to Semiconductor Stocks Amid Market Volatility

Highlights 

• August trading saw a surge in demand for Nvidia with a 155% increase in trades on SelfWealth. 
• Broad interest in semiconductor stocks persists, with many companies seeing strong trading volumes.
• Bitcoin-related ETFs gained traction despite a volatile month for the cryptocurrency market.

In August, investors capitalized on market volatility and recession fears to acquire shares of one of the hottest stocks in the Nasdaq—Nvidia (NASDAQ:NVDA). Trading platform SelfWealth (ASX:SWF) reported a staggering 155% increase in trades for Nvidia, highlighting a significant wave of buying activity, with over 70% of trades classified as purchases. 

Despite a turbulent trading environment and a more than 15% decline in Nvidia's stock during the month, the share price rebounded impressively, gaining over 30%. The overall trading value for Nvidia shares on SelfWealth's platform exceeded $200 million in August, marking a remarkable increase of more than tenfold compared to July. This figure ranks among the highest monthly trading volumes for any stock, whether listed on the ASX or in the US markets. 

Broad Interest in Semiconductor Stocks 

The spike in Nvidia's trades is part of a broader trend among investors, showcasing heightened interest in semiconductor stocks. While trading activity in this sector had moderated in recent months, the renewed volatility at the beginning of August reignited enthusiasm. Other notable semiconductor stocks, including Advanced Micro Devices (NASDAQ:AMD), Intel (NASDAQ:INTC), Super Micro Computer (NASDAQ:SMCI), Micron Technology (NASDAQ:MU), Taiwan Semiconductor Manufacturing (NYSE:TSM), and Qualcomm (NASDAQ:QCOM), were also among the most actively traded stocks on the SelfWealth platform. These stocks demonstrated a strong buy-to-sell ratio, signaling widespread investor support. 

In addition to individual stocks, there was an increase in trading activity for related ETFs, such as Direxion Daily Semiconductor Bull 3X Shares (NYSE:SOXL) and GraniteShares 2x Long NVDA Daily ETF (NASDAQ:NVDL). The tech sector, at the core of the August pullback, saw significant trade volume increases for major companies including Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), and Microsoft (NASDAQ:MSFT), with trade volumes up by 35.6%, 68.4%, and 39.5%, respectively, despite a decline in share prices. 

Emerging Trends in Bitcoin-Related ETFs 

August also witnessed increased interest in Bitcoin-related ETFs. Notable products like ProShares UltraShort Bitcoin ETF (NYSE:SBIT) and ProShares Ultra Bitcoin ETF (NYSE:BITU) attracted significant capital flow. Bitcoin itself experienced considerable volatility, initially dropping before recovering slightly, yet still finishing the month down approximately 10%. The market saw heightened trading activity reflecting both bullish and bearish sentiments toward Bitcoin. 

As of September, Bitcoin has rebounded, showing over a 9% increase, a contrast to its historically bearish performance during this month. 

Most Held US Shares on SelfWealth 

The top five most-held US shares on the SelfWealth platform include Tesla (NASDAQ:TSLA), Nvidia (NASDAQ:NVDA), Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), and Alphabet (NASDAQ:GOOG). Notably, Berkshire Hathaway (NYSE:BRK) holds the eighth position on the list, experiencing a growth of 10.3% in August, following an 11% increase in July. The underlying share price of BRK rose by 8.5%, with over 75% of trades in the stock recorded as purchases. 

Palantir (NYSE:PLTR) continues to climb the ranks among US securities on the SelfWealth platform, achieving its third consecutive month of growth following a strong earnings report. The report revealed accelerating revenue growth driven by increased deals with commercial clients. 

In a twist, GameStop (NYSE:GME) and MicroStrategy (NASDAQ:MSTR) swapped places in the rankings, now positioned 13th and 15th, respectively. Additionally, Taiwan Semiconductor Manufacturing (NYSE:TSM) rejoined the top 20, reflecting renewed interest in semiconductor stocks. 

The ongoing market dynamics highlight the shifting landscape in the investment arena, with semiconductor stocks and Bitcoin-related ETFs emerging as key focus areas amid broader economic uncertainties.