Why are retail investors buying tech stocks despite AI fears?

Retail investors are taking advantage of lower prices following a selloff and are largely brushing aside worries that AI advancements could negatively impact the software and tech industry.

What is the iShares Expanded Tech-Software Sector ETF experiencing?

The iShares Expanded Tech-Software Sector ETF has seen record net inflows, exceeding double previous peaks, as retail investors buy up software and tech stocks.

How have AI fears impacted other market sectors?

AI jitters have spread to other markets, causing declines in insurance stocks in the U.S. and Europe, which analysts have linked to developments in insurance-related apps within ChatGPT.

Home / Business and Economy / Retail Investors Buy Tech Stocks Despite AI Fears

Retail Investors Buy Tech Stocks Despite AI Fears

10 Feb

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Summary

Record inflows into tech-software ETF seen by BlackRock.
Retail investors accumulated mega-cap stocks like Amazon.
AI fears spread, impacting insurers in US and Europe.

Retail Investors Buy Tech Stocks Despite AI Fears

Retail investors have recently demonstrated a strong appetite for software and tech stocks, largely disregarding anxieties surrounding artificial intelligence advancements. This trend is highlighted by record net inflows into BlackRock's iShares Expanded Tech-Software Sector exchange-traded fund, reaching $176 million over a one-month period as of February 10, 2026. These flows have reportedly more than doubled previous peaks.

Last week, global markets experienced significant volatility. Fears resurfaced about the potential impact of rapidly evolving AI systems on the core businesses of established software companies, particularly after AI developer Anthropic released new features for its Claude Cowork agent.

This sentiment led to a sharp decline in the S&P 500 Software and Services index, which fell approximately 13% since late January, erasing nearly $1 trillion in market value by Thursday. The iShares Tech-Software ETF itself has lost nearly 20% of its value year-to-date.