Retail investors went all-in on semiconductors last month. According to eToro data, retail buy volume on the platform’s US arm in May 2026 surpassed every other month this year, with chip stocks driving the bulk of activity.

The PHLX Semiconductor Index posted a combined gain of roughly 69.1% across April and May. Micron’s stock surged 187.4% during that same window. Sandisk climbed 166.8%.

The names retail traders are chasing

The most purchased semiconductor stocks on eToro included Nvidia, Micron, Sandisk, Intel, and AMD.

Bret Kenwell, an investment analyst at eToro, described the current environment as a “heyday for retail investors.” But he paired that observation with a warning about what happens when momentum fades.

“It’s a heyday for retail investors,” Kenwell said, while emphasizing the potential risks should the rally lose steam.

Why the AI chip rally keeps pulling in buyers

A 69.1% gain in a benchmark index over two months is extraordinary by any historical standard. For context, the PHLX Semiconductor Index’s full-year return in 2023, which was considered a blockbuster year for chip stocks, was around 65%. April and May of 2026 essentially matched that in eight weeks.

What this means for investors

There’s also a portfolio concentration issue. When one sector dominates retail buying activity to this degree, individual investors may be taking on more exposure to semiconductor-specific risk than they realize. A diversified portfolio that was 5% semiconductors six months ago might now be 15% or 20%, purely from price appreciation and additional buying.