In the U.S. financial markets, retail investors are individual, non-professional investors who buy and sell securities such as stocks, bonds, ETFs, and mutual funds for their personal accounts. They trade using brokerage accounts, online platforms, or financial advisors, typically with smaller capital compared to institutional investors like hedge funds, banks, or pension funds.

Retail investors often focus on long-term wealth building, short-term trading, or speculative investing, and their market behavior can be influenced by news, social media, and sentiment-driven trends (e.g., meme stocks, AI stocks).

Retail investors have significantly ramped up their stock purchases, particularly in Nasdaq 100 stocks. According to Goldman Sachs Investment Research, net retail inflows into Nasdaq 100 stocks have surged to 0.1% of market capitalization, marking the highest level in over a year. This sharp rise highlights the growing influence of individual investors in the stock market.

Retail Flows Have Doubled in Weeks

The chart shows a parabolic increase in retail net inflows, especially in early 2025, with cumulative flows into Nasdaq 100 stocks rising sharply. In just a few weeks, retail flows have doubled, reflecting unprecedented buying activity.

Record-High Sentiment Among Retail Investors

Retail enthusiasm is at an all-time high. JPMorgan’s retail investor sentiment score has hit 4 points, surpassing the 2021 meme stock mania peak by 1 point. This suggests extreme bullishness, with individual traders betting heavily on further market gains.

Tesla and Nvidia Are the Top Picks

Among the stocks attracting the most attention, Tesla ($TSLA) and Nvidia ($NVDA) lead the way as the most popular buys among retail investors. Their dominance signals strong investor confidence in the AI, semiconductor, and EV sectors.

With retail money flooding the markets at record levels, the key question remains: Will this buying spree continue to fuel a rally, or is the market entering another speculative bubble like in 2021?