UK Investors Embrace US Tech Amid Tariff Storms
May 3, 2025, 5:19 pm
Location: United Kingdom, England, Long Ashton
Employees: 1001-5000
Founded date: 1981
Total raised: $6.88B
Location: United States, California, Cupertino
Employees: 10001+
Founded date: 1976
Total raised: $100M
In the ever-shifting landscape of global finance, UK retail investors are showing a fierce loyalty to US technology stocks. Despite looming tariffs and market volatility, they are doubling down on tech giants like Nvidia, Palantir, and Tesla. It’s a high-stakes game, but the allure of American innovation is hard to resist.
April saw a surge in trading activity. On AJ Bell, Nvidia was the second most traded stock, just behind BP. Tesla and Amazon also made the top ten, showcasing a robust appetite for US tech. This trend is not just a flash in the pan; it signals a deeper commitment to the tech sector, even as geopolitical tensions rise.
Saxo Markets echoed this sentiment, reporting significant buying activity in US tech stocks. The so-called "magnificent seven"—Amazon, Alphabet, Apple, Meta, and Microsoft—are leading the charge. UK stocks like BP and Rolls-Royce are mere blips on the radar compared to the dominance of US tech.
Hargreaves Lansdown’s weekly snapshot paints a similar picture. Large-cap UK names are still in the mix, but US growth stocks are stealing the spotlight. Nvidia and Tesla are particularly prominent, indicating a clear preference among retail traders.
However, the road ahead is fraught with challenges. Nvidia, a titan in the AI and data center markets, is feeling the heat from escalating trade tensions. The prospect of reciprocal tariffs on technology imports has investors on edge. Nvidia relies heavily on Taiwan Semiconductor Manufacturing Company for over 90% of its production. Any disruption could send shockwaves through its operations.
Despite these concerns, Nvidia remains a powerhouse. Its data center business reported a staggering $35.6 billion in revenue last quarter, fueled by soaring demand for generative AI and large language models. The recent launch of its Blackwell GPU further cements its leadership in AI workloads.
Palantir Technologies is also capturing investor attention. Its stock recently soared to an all-time high, buoyed by a 36% year-over-year revenue increase. The company is thriving in both US commercial and government sectors, driven by relentless demand for AI solutions. This momentum suggests that Palantir is not just a flash in the pan; it’s a player to watch.
Tesla, on the other hand, is navigating choppy waters. Its stock has declined about 30% year-to-date, primarily due to concerns over CEO Elon Musk’s political entanglements and disappointing Q1 earnings. Yet, Musk’s recent announcement to step back from politics and refocus on Tesla provided a temporary boost, with shares rising 9% following the news. Still, analysts urge caution. The consensus is to hold off on buying until Tesla’s valuation drops significantly.
Meanwhile, Apple is facing its own set of challenges. Despite posting better-than-expected earnings, its shares fell nearly 3% in after-hours trading. The company reported revenue of $95.4 billion and net income of $24.8 billion for the March quarter, slightly exceeding Wall Street expectations. iPhone sales were a bright spot, climbing to $46.8 billion, driven by demand for a new mid-market model.
However, the muted performance of Apple’s services unit and delays in its AI rollout have tempered investor enthusiasm. The specter of tariffs looms large, particularly as Apple remains exposed to a potential 20% tariff on Chinese imports. This uncertainty has prompted a consumer pull forward, with buyers rushing to purchase before prices potentially rise.
CEO Tim Cook remains optimistic, noting that inventory levels are balanced. Yet, analysts caution that the sustainability of iPhone sales is in question once tariffs take effect. Apple’s brand is strong, but it’s navigating turbulent waters. The company is also pivoting to US-based chip production, a move designed to appease lawmakers and mitigate scrutiny.
Apple’s services division, which includes iCloud and the App Store, posted revenue of $26.65 billion, slightly below forecasts. This shortfall raises concerns about Apple’s positioning in the AI space, especially with the long-promised Siri upgrade now pushed back to 2026. The delay reflects deeper issues within Apple’s execution discipline, a stark contrast to its once-reliable innovation track record.
In response to these challenges, Apple’s board approved a $100 billion buyback program and raised its dividend by 4%. This financial engineering is a clear signal that the company is leaning on shareholder returns amid strategic uncertainty. Apple’s hardware dominance is undeniable, but the limitations of its ecosystem are becoming apparent.
As tariffs loom and AI delays persist, Apple’s future hinges on more than just product quality. It must navigate political landscapes, adapt its supply chain, and find ways to surprise a saturated market. The stakes are high, and the outcome remains uncertain.
In conclusion, UK retail investors are betting big on US tech, even as storm clouds gather. The allure of innovation is strong, but the path forward is fraught with challenges. Investors must tread carefully, balancing optimism with caution in a volatile market. The dance between risk and reward continues, and only time will tell who will emerge victorious.
April saw a surge in trading activity. On AJ Bell, Nvidia was the second most traded stock, just behind BP. Tesla and Amazon also made the top ten, showcasing a robust appetite for US tech. This trend is not just a flash in the pan; it signals a deeper commitment to the tech sector, even as geopolitical tensions rise.
Saxo Markets echoed this sentiment, reporting significant buying activity in US tech stocks. The so-called "magnificent seven"—Amazon, Alphabet, Apple, Meta, and Microsoft—are leading the charge. UK stocks like BP and Rolls-Royce are mere blips on the radar compared to the dominance of US tech.
Hargreaves Lansdown’s weekly snapshot paints a similar picture. Large-cap UK names are still in the mix, but US growth stocks are stealing the spotlight. Nvidia and Tesla are particularly prominent, indicating a clear preference among retail traders.
However, the road ahead is fraught with challenges. Nvidia, a titan in the AI and data center markets, is feeling the heat from escalating trade tensions. The prospect of reciprocal tariffs on technology imports has investors on edge. Nvidia relies heavily on Taiwan Semiconductor Manufacturing Company for over 90% of its production. Any disruption could send shockwaves through its operations.
Despite these concerns, Nvidia remains a powerhouse. Its data center business reported a staggering $35.6 billion in revenue last quarter, fueled by soaring demand for generative AI and large language models. The recent launch of its Blackwell GPU further cements its leadership in AI workloads.
Palantir Technologies is also capturing investor attention. Its stock recently soared to an all-time high, buoyed by a 36% year-over-year revenue increase. The company is thriving in both US commercial and government sectors, driven by relentless demand for AI solutions. This momentum suggests that Palantir is not just a flash in the pan; it’s a player to watch.
Tesla, on the other hand, is navigating choppy waters. Its stock has declined about 30% year-to-date, primarily due to concerns over CEO Elon Musk’s political entanglements and disappointing Q1 earnings. Yet, Musk’s recent announcement to step back from politics and refocus on Tesla provided a temporary boost, with shares rising 9% following the news. Still, analysts urge caution. The consensus is to hold off on buying until Tesla’s valuation drops significantly.
Meanwhile, Apple is facing its own set of challenges. Despite posting better-than-expected earnings, its shares fell nearly 3% in after-hours trading. The company reported revenue of $95.4 billion and net income of $24.8 billion for the March quarter, slightly exceeding Wall Street expectations. iPhone sales were a bright spot, climbing to $46.8 billion, driven by demand for a new mid-market model.
However, the muted performance of Apple’s services unit and delays in its AI rollout have tempered investor enthusiasm. The specter of tariffs looms large, particularly as Apple remains exposed to a potential 20% tariff on Chinese imports. This uncertainty has prompted a consumer pull forward, with buyers rushing to purchase before prices potentially rise.
CEO Tim Cook remains optimistic, noting that inventory levels are balanced. Yet, analysts caution that the sustainability of iPhone sales is in question once tariffs take effect. Apple’s brand is strong, but it’s navigating turbulent waters. The company is also pivoting to US-based chip production, a move designed to appease lawmakers and mitigate scrutiny.
Apple’s services division, which includes iCloud and the App Store, posted revenue of $26.65 billion, slightly below forecasts. This shortfall raises concerns about Apple’s positioning in the AI space, especially with the long-promised Siri upgrade now pushed back to 2026. The delay reflects deeper issues within Apple’s execution discipline, a stark contrast to its once-reliable innovation track record.
In response to these challenges, Apple’s board approved a $100 billion buyback program and raised its dividend by 4%. This financial engineering is a clear signal that the company is leaning on shareholder returns amid strategic uncertainty. Apple’s hardware dominance is undeniable, but the limitations of its ecosystem are becoming apparent.
As tariffs loom and AI delays persist, Apple’s future hinges on more than just product quality. It must navigate political landscapes, adapt its supply chain, and find ways to surprise a saturated market. The stakes are high, and the outcome remains uncertain.
In conclusion, UK retail investors are betting big on US tech, even as storm clouds gather. The allure of innovation is strong, but the path forward is fraught with challenges. Investors must tread carefully, balancing optimism with caution in a volatile market. The dance between risk and reward continues, and only time will tell who will emerge victorious.