This article was produced 6 September 2024. 

Key takeaways: 

• Semiconductor shares attracted widespread interest across the Selfwealth community in August, with seven of the top 20 most traded shares related to this investment theme. 

• Mega tech names Amazon, Alphabet, and Microsoft, each subject to share price weakness through the month, recorded a spike in trade volumes on the Selfwealth platform. 

As always past trends and performance are not an indicator of future trends and performance.   

US shares started August on the back foot as investors reassessed the outlook for the world’s largest economy. That pivot was precipitated by jobs data pointing to both a slowdown in hiring, and an increase in the official unemployment rate. 

Amid said concerns, traders initially opted for a risk-off approach, with tech proving susceptible to the sell-off. However, it wasn’t long before buyers stepped up, and the Dow Jones was back at a record high thanks to a 1.8% return for the month. Meanwhile, the S&P 500 returned 2.3%, and the Nasdaq Composite lifted 0.7%. 

Given the backdrop, Selfwealth members were active in the market throughout August, and these were the most popular trades. 

US share trading activity 

Selfwealth trades in semiconductor giant Nvidia (NASDAQ: NVDA) rose 155% over the month, with the stock largely supported by a wave of buying activity. More than seven out of every ten trades were ‘buys’, which coincided with a volatile month of trading for the company. At one stage, NVDA shares were down over 15% for the month, amid a tech-led sell-off, before the stock subsequently rallied more than 30%. 

It was part of a broader theme that saw significant interest in chip stocks across the Selfwealth community. Other than Nvidia, shares such as 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) all featured among the month’s most actively traded names. 

Each of these commanded a strong buy-to-sell ratio, indicating broad-based investor support for semiconductor stocks. This cohort of shares saw a moderation in trading activity over preceding months as the AI trade showed signs of ‘unwinding’, but the sudden resurgence in market volatility at the start of August prompted a new round of buying support amid segment weakness. 

More broadly, this also applied to other tech giants, since it was the tech sector at the heart of the pull-back. As far as Amazon (NASDAQ: AMZN), Alphabet (NASDAQ: GOOGL), and Microsoft (NASDAQ: MSFT), monthly trade volumes in the trio rose 35.6%, 68.4%, and 39.5% respectively. Buying conviction remained strong, even as the three shares posted share price declines. 

Still in the tech space, albeit a much smaller player, AST SpaceMobile (NASDAQ: ASTS) gained traction on the Selfwealth platform after the satellite designer and manufacturer found itself in the news. A competitor to Elon Musk’s Starlink, ASTS soared over 40% - — and at one stage had nearly doubled - — after confirming the inaugural commercial launch of a satellite network in low-Earth orbit. It is the first time ASTS featured among the most traded Selfwealth shares, with nearly two-thirds of all trades linked to buying activity. 

Enthusiasm for semiconductor shares was also evident via the uptick in trading activity for related ETFs, including Direxion Daily Semiconductor Bull 3X Shares (NYSE: SOXL) and GraniteShares 2x Long NVDA Daily ETF (NASDAQ: NVDL). 

Both funds, which rely on leverage to amplify exposure to the ‘bullish’ case for the segment, have been among the top three most actively traded US ETFs during each of the last three months. In August, Selfwealth trade volumes in SOXL surged 113.7% over the month, while NVDL trades grew by 10.2% across the same period. 

While trade volumes hinted at ‘bullish’ views among investors for US shares in August, money flow painted a far more balanced picture. 

Even Nvidia saw the overall value of shares traded split down the middle between buying and selling. Though this was based on a significant spike in trade values, with the collective value of NVDA shares traded in August across the Selfwealth community exceeding $200 million, up more than ten-fold compared with the result from July. This is among the highest ever monthly figures on the platform for any stock, be it ASX-listed or US-listed. 

Elsewhere, Apple (NASDAQ: AAPL) was the fourth most traded US stock by value. This was the highest ranking for the tech behemoth since December 2023. It follows a quiet few months regarding money flow for AAPL on the Selfwealth platform, with elevated trade volumes overwhelmingly consisting of smaller-value trades. However, in August, the average AAPL trade exceeded $75,000, the highest result since March 2023. 

For the first time, either by trade volumes or trade values, Chipotle Mexican Grill (NYSE: CMG) featured among the most actively traded US shares. In 12th position, money flow in CMG was also split evenly between buying and selling. Making the news last month, the company lost its CEO to Starbucks after a six-year period where the business turned around and more than doubled annual revenue to circa US$10 billion. 

Another interesting trend saw bitcoin-related ETFs garner significant money flow, courtesy of the ProShares UltraShort Bitcoin ETF (NYSE: SBIT) and the ProShares Ultra Bitcoin ETF (NYSE: BITU). Much like equities, bitcoin recorded a volatile month as risk-off appetite prevailed, with the asset diving at the start of the month, paring said losses, but still rounding out August with a 10% decline. Both the ‘bull’ and ‘bear’ case for bitcoin saw elevated money flow through the month. We highly recommend you always undertake your own research, particularly with Bitcoin which is highly volatile and potentially exposes investors to substantial capital loss. 

Which US shares are the most held? 

While there were few changes to the order of the most held US shares in the Selfwealth community, some names did fare better than others in terms of holdings growth. 

Berkshire Hathaway (NYSE: BRK), in eighth, recorded its second consecutive month where the collective value of holdings on the platform rose by double digits. In August, growth measured 10.3%, which followed a reading of 11.0% a month prior. BRK’s underlying share price rose 8.5% through the month, with the rest attributable to strong net buying support from Selfwealth members, as evidenced by the fact that over 75% of trades in BRK last month were buys. 

In a similar fashion, Palantir (NYSE: PLTR) strung together its third straight month of growth, with two of those results also in the double digits. After said growth, PLTR is ranked 11th among US securities on the Selfwealth platform, as measured by the value of all holdings. A key catalyst for the stock was its earnings report, which showed quarterly revenue growth accelerating on the back of a surge in deals with commercial customers. 

With contrasting share price performances across the month, GameStop (NYSE: GME) and MicroStrategy (NASDAQ: MSTR) swapped places in 13th and 15th positions respectively, while the iShares Bitcoin Trust ETF (NASDAQ: IBIT) held onto 18th spot, despite the collective value of IBIT holdings slumping 10.5% during the month. That decline followed a double-digit slump in the price of bitcoin as market volatility weighed on the asset class more than shares. We highly recommend you always undertake your own research, particularly with Bitcoin which is highly volatile and potentially exposes investors to substantial capital loss 

And finally, Taiwan Semiconductor Manufacturing (NYSE: TSM) rejoined the top 20 after a brief absence. Shares in the semiconductor foundry benefitted from renewed interest in chip stocks, both across the broader market, and within the Selfwealth community. 

As always past trends and performance are not an indicator of future trends and performance.   

That’s all for this Trade Trends report, stay tuned for the next edition this time next month!