This article was produced 15 January, 2025.

Key takeaways:

• Quantum computing emerged as a popular investment theme through December, extending beyond Alphabet to other names that achieved stock-specific record trade volumes across the Selfwealth community.

• Nvidia recorded the third highest ever result on the platform for money flow in any given month.

• Tesla became the first US stock to pass $100 million in community holdings.

• Palantir saw its sixth consecutive month of double-digit growth in Selfwealth holdings.

• It is important to always do your own research before making decisions to invest.

• Cryptocurrency can be volatile, and past returns are not an indicator of future returns.

US markets ended the year with mixed results, as investors digested new remarks from the Federal Reserve outlining its interest rates forecast for 2025.

With that, key benchmark indices failed to keep up their strong performances for the year. While the Nasdaq Composite still managed to post a modest return of 0.5% for the month, the S&P 500 declined 2.5%, and the Dow Jones tumbled 5.3%.

Meanwhile, as Bitcoin interest across the Selfwealth community moderated slightly from November’s frenzy, and ever-popular names like Tesla and Nvidia remained in the spotlight, we also saw a new theme emerge in the quantum computing arena.

US share trading activity

Already the most actively traded US stock across each of the preceding six months, Nvidia (NASDAQ: NVDA) extended that run in December, albeit this time Selfwealth trade volumes in the semiconductor giant increased 31.9% over the month. Buying conviction moderated a fraction versus a month prior, however, with a buy-to-sell ratio of 67.9%, investors were still overwhelmingly ‘bullish’ towards the tech name.

December brought with it a new wave of interest in a very niche segment of the tech sector — quantum computing. As such, this propelled names like

D-Wave Quantum (NYSE: QBTS), Quantum Computing (NASDAQ: QUBT), Rigetti Computing (NASDAQ: RGTI), and IONQ (NYSE: IONQ) into the fray as investors and traders adopted a positive view towards the cohort’s outlook. The first three of these names all made their debut among the most traded stocks last month.

Much of the broader market’s interest in this segment originated after the presidential election in November, with the cohort having performed well during the first Trump administration. However, there was also a spate of developments in December which added momentum to the segment, which included IONQ shipping its first quantum computer to a European customer, Quantum Computing and D-Wave both launching stock offerings, and a new quantum computing chip announced by Alphabet (NASDAQ: GOOGL).

Shares in SoundHound AI (NASDAQ: SOUN) soared 113.1% in December, making it one of the best performing stocks across the entire market.

The company, which focuses on conversational AI, announced new contract wins, and was also the beneficiary of a major broker upgrade from Wedbush, which lifted its price target for the stock from US$10 per share to $22 per share. Across the Selfwealth community, most of last month’s trading action was buyers following the stock’s momentum.

Another stock delivering huge returns in 2024 — up 361% for the year — was Rocket Lab USA (NASDAQ: RKLB), which also ranked as the 14th most traded US stock in December. With the company increasing its revenue and growing its backlog through the year, investor interest has risen in kind, with buyers taking a long-term outlook amid more attention being centred on the aerospace industry, including rockets and space-based assets.

Sticking with the aerospace theme, Archer Aviation (NYSE: ACHR), which is working on designing and developing electric vertical take-off and landing (eVTOL) aircraft, was the 17th most traded US stock on the platform last month. This was the first time ACHR has featured among the most traded names, either by trade volumes or trade values.

With the highest buying conviction of any fund among the most traded ETFs, approximately three quarters of all trades in the Vanguard S&P 500 ETF (NYSE: VOO) were buys.  

Not only was that up fractionally compared with the sentiment level recorded in November, but trade volumes rose by around 62% over the month. This may have had something to do with the late-year pull-back in the S&P 500, which prompted some buyers to increase their exposure to the index based on a view said weakness may have been a temporary ‘dip’. 

In keeping with the observations made around last month’s most actively traded stocks by volume, money flow also heavily favoured quantum computing.  

D-Wave Quantum, Quantum Computing, and Rigetti Computing were the second, sixth, and ninth most traded stocks by value through December. In fact, between the three stocks, more than $50 million worth of shares were traded, whereas previously, none of these individual names had recorded a month where even just $2 million worth of shares were traded. 

Meanwhile, money flow in Nvidia more than doubled over the month. In total, approximately $178 million worth of NVDA shares were traded in December, which was the third highest result for any US stock in the Selfwealth community since international shares were added to the platform. The most recent occasion, dating back to August, also involved Nvidia, but prior to that, it was Bank of America in May 2023. 

Elsewhere, the market sell-off also saw greater money flow across tech names, with the likes of Apple (NASDAQ: AAPL) recording a near threefold increase in the value of its shares traded, while Palantir (NASDAQ: PLTR), Amazon (NASDAQ: AMZN), and Advanced Micro Devices (NASDAQ: AMD) all witnessed a surge in overall trade values. 

Which US shares are the most held? 

As the Tesla (NASDAQ: TSLA) share price rallied, collective holdings in the electric vehicle manufacturer quickly surpassed the $100 million mark, becoming the first US stock on the platform to ever do so.  

Overall TSLA holdings grew by 22.8% during the month, outpacing an underlying share price increase of 17%. The stock’s post-election rally, which resulted in an all-time high last month, has been tied to Tesla CEO Elon Musk’s high-profile ascendency to act as an advisor to the Trump administration, with some investors speculating the company may benefit as a result. 

In fourth spot, Google parent company Alphabet returned to its highest ranking since January 2024. The GOOGL share price rose 11.7% last month, but an outsized buying presence saw Selfwealth holdings grow by 17.9% through December. The major catalyst for the company was the unveiling of a new quantum computing processor chip dubbed ‘Willow’, which it is pitching as a ‘breakthrough’ in the computing industry. 

Elsewhere, Palantir’s remarkable run continued, with the stock posting its sixth consecutive monthly result where holdings grew by a double-digit rate. That means the stock is now ranked seventh in the community by the value of all holdings, compared with a ranking of 13th at the start of the year.  

Since the start of 2024, PLTR holdings on the Selfwealth platform have grown fivefold. Last month’s trading interest came on the back of contract announcements, as well as partnership deals to extend the data firm’s capabilities and reach in the defence industry. 

Finally, with the price of Bitcoin moderating through the month, cryptocurrency holdings moved down the list of the most popular US stocks in the community. For example, MicroStrategy (NASDAQ: MSTR) fell two spots to 10th position, while the iShares Bitcoin Trust ETF (NASDAQ: IBIT) ended the year in 16th spot, one place lower than its November ranking. Bitcoin can be volatile and high risk and investors should undertake their own research. 

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