Retail investors in the UAE capitalized on a volatile first quarter, increasing their holdings in AI infrastructure and enterprise software companies whose stock prices took a significant hit. According to new Q1 2026 data from trading platform eToro, local investors demonstrated a selective and opportunistic strategy, betting on long-term value despite wider market fears of a “SaaSpocalypse.”
Quick Facts
- ServiceNow holders jumped 125% in Q1.
- Super Micro Computer saw a 65% holder increase.
- NVIDIA remains the most widely held stock among UAE users.
An Opportunistic Bet on Software
The idea that AI could dismantle traditional Software-as-a-Service (SaaS) business models did little to deter UAE investors. Instead, they used the sector-wide sell-off to acquire shares at a discount. ServiceNow led the charge, with a 125% increase in holders on eToro’s platform after its share price fell by about 32%. The dip occurred even as the company announced new partnerships with AI leaders OpenAI and Anthropic.
Similarly, Adobe saw a 54% jump in holders. The company’s stock was down approximately 25% by mid-March amid concerns over its ability to defend its software dominance against new AI tools, signaling that local investors saw the pullback as a buying opportunity.
“Despite talk about the ‘Saaspocalypse,’ the idea that AI will dismantle traditional SaaS business models, UAE investors showed sustained interest in software,” said George Naddaf, Managing Director at eToro (MENA). “They are honing in on companies that they believe have a clear role in the tech value chain and potential for monetisation.”
AI Infrastructure Draws Strong Interest
Beyond enterprise software, AI infrastructure was another clear focus for UAE investors. Super Micro Computer ranked second among the top risers with a 65% increase in holders, followed by Oracle in sixth with a 38% rise. Both stocks fit the buy-the-dip pattern; investors appeared to move in after Super Micro Computer’s stock tumbled 33% and as Oracle remained volatile due to spending concerns around its AI cloud expansion.
The standout exception was Micron Technology, which saw a 39% increase in holders while its stock price actually gained during the quarter. The positive momentum was driven by surging demand for its AI memory chips.
“In Q1, UAE investors approached technology with selectivity and opportunism,” Naddaf commented. “Some of the companies that drew the strongest increase in holders had fallen to around 25% to 33%, suggesting investors were willing to buy into the sell-off where they still saw long-term value.”
Conviction in Mega-Cap Tech Holds Firm
While investors were opportunistic with beaten-down stocks, the list of most widely held companies remained largely stable, pointing to a long-term conviction in established tech giants. NVIDIA held its top spot, while Amazon climbed to second and Microsoft moved up to fourth, displacing Tesla and Apple slightly. The top ten list otherwise remained unchanged from the previous quarter.
“It suggests UAE investors are continuing to treat these names as core positions rather than short-term trades,” Naddaf added. “This points to continued conviction in mega-cap technology companies contributing to AI infrastructure and enterprise applications. In a quarter marked by uncertainty, that kind of stability points to a confidence in scale, earnings visibility, and relevance.”
The data also showed investors actively differentiating between perceived winners and losers. While software and AI firms dominated the risers, tech companies like Okta (-49% in holders) and CoreWeave (-47%) were among the biggest fallers.
About eToro
eToro is the trading and investing platform that empowers you to invest, share and learn. It was founded in 2007 with the vision of a world where everyone can trade and invest in a simple and transparent way. Today eToro has 40 million registered users from 75 countries. eToro has created a collaborative investment community designed to provide you with the tools you need to grow your knowledge and wealth. On eToro, you can hold a range of traditional and innovative assets and choose how you invest: trade directly, invest in a portfolio, or copy other investors.
Source: Zawya
