UAE Investors Ditch Old Software for New AI Infrastructure Gold Rush

Retail investors in the UAE demonstrated a notable strategic shift in their investment portfolios during the third quarter of 2026, according to platform data from the trading and investing app eToro. This period saw investors increasingly move into companies actively building the physical backbone of artificial intelligence (AI), while simultaneously reducing their exposure to several software businesses. Josh Gilbert, lead analyst for Asia Pacific and Middle East at eToro, provided insights into these trends, comparing holdings among eToro’s funded UAE users between the end of the second and third quarters of 2026.

Oracle emerged as the leading riser, experiencing an impressive 86 percent quarter-on-quarter increase in the number of UAE users holding its stock. Following Oracle, Grab Holdings saw an 83 percent rise, while memory and storage manufacturer Sandisk recorded a 56 percent increase. Other significant gainers on the risers list included prominent chip and memory names such as Broadcom, which ranked seventh with a 22 percent increase, and Micron Technology, coming in ninth with a 20 percent rise. Space-focused companies Rocket Lab and SpaceX secured fifth and sixth places, respectively, with Nike, Trade Desk, and Uber completing the top ten.

Gilbert explained this investment pattern, stating that “UAE investors are following the AI money to where it’s actually being spent, and Oracle has become one of the clearest ways to own that build-out.” He referenced Oracle’s announcement in September of over USD 30 billion in additional AI cloud contracts during its fiscal first quarter as a key driver. Furthermore, Gilbert pointed to Broadcom, Sandisk, and Micron as clear evidence that regional investors are looking beyond the most recognized AI names, focusing instead on the essential suppliers of the chips, memory, and storage critical for AI workloads.

Conversely, the software sector experienced significant declines. Customer experience software company NiCE recorded the largest fall, with its holders decreasing by 84 percent. Cosmetics brand e.l.f. Beauty matched this decline, while website builder Wix.com saw a 77 percent drop. Other notable fallers included Accenture, Salesforce, and Duolingo. Gilbert commented on this trend, noting that “Half of the UAE’s biggest fallers sell something AI is quickly learning to do on its own, from building a website with Wix to learning a language with Duolingo, and investors in the region have stopped giving those businesses the benefit of the doubt.” He stressed that companies like Salesforce, NiCE, and Accenture would need to demonstrate AI as a genuine source of new revenue in their financial results before investor sentiment could shift.

Consumer stocks presented a mixed picture. Nike climbed to fourth among the risers following its shares falling to a 12-year low, suggesting investors saw a buying opportunity. In contrast, e.l.f. Beauty ranked second among the fallers. Gilbert interpreted these contrasting movements as investors making judgments on individual businesses rather than an overarching sector-wide assessment.

Regarding the most widely held stocks among eToro users in the UAE, Nvidia maintained its top position. Amazon advanced from third to second place, and Tesla moved from fourth to third. Microsoft, however, slipped from second to fourth. Apple, Meta, and Alphabet retained their strong positions at fifth, sixth, and seventh, respectively. Alibaba climbed to eighth place, displacing Strategy Inc, while Nio remained in tenth. This data covers funded accounts of eToro users in the UAE and was accurate after market close on 30 September 2026, with a reminder that past performance is not an indication of future results.