Retail investors ditch Apple as concerns over tariffs grow

In the United States, retail investors are showing a remarkable preference for certain technology stocks while expressing significant concern over others. Over the week ending May 8, 2025, individual traders invested over $1 billion into Nvidia and $1.2 billion into Tesla, highlighting a resurgence in interest towards these stocks that have previously captivated Main Street investors. The inflows come despite a general slowdown in net flows to large-cap stocks, showcasing a distinct divergence in investor sentiment towards different entities within the tech sector. While Nvidia and Tesla, two prominent players in the stock market, have been experiencing challenges, their appeal remains strong among average investors. Conversely, Apple has faced notable outflows, with retail investors pulling approximately $400 million from its shares. This decision coincided with fears stemming from the implications of President Donald Trump's tariffs on Chinese imports, which have raised concerns about Apple's extensive reliance on manufacturing within China. The tech giant's shares have reportedly declined by nearly 7% in May following the release of its latest earnings report, which further ignited investor worries regarding its profitability under potential tariff pressures. The declining interest in Apple juxtaposes the reinvigorated demand for Nvidia and Tesla, signaling shifting priorities within the retail investor landscape. The contrasting behaviors of retail investors regarding these stocks spotlight a broader trend of fluctuating sentiment as individual investors react to external factors affecting market performance. Nvidia, a leader in graphics processing units and an essential player in advancing artificial intelligence, has seen a significant fall of over 12% year-to-date following a period of substantial gains. Meanwhile, Tesla has also witnessed a distressing decline of roughly 30%, impacted by sales slowdown and criticism directed towards CEO Elon Musk's political engagements. Despite the challenges faced by these companies, the strong investment from retail traders reflects ongoing enthusiasm in their long-term potential despite short-term volatility. Overall, the shifts in investment patterns and the clear disillusionment with Apple suggest that retail traders are actively recalibrating their portfolios in response to broader economic indicators and sentiments, showcasing a dynamic market environment where individual stock preferences are in constant flux. Consequently, this repositioning poses critical implications for manufacturers and investors as they navigate through fluctuating perceptions and financial strategies connected to the technology sector.