Indian investors have bought more US technology stocks this year amid a sustained rally in the bellwether names.

Shares of Tesla, Microsoft, Meta Platforms and Nvidia have soared over 100 per cent this year. Shares of Amazon, Netflix, Apple and Alphabet are up 77 per cent, 66 per cent, 56 per cent, and 55 per cent, respectively.

Investment in FAANGM (Facebook, Apple, Amazon, Netflix, Google, and Microsoft) shares through online investment platform Vested Finance has risen 35 per cent year-on-year to over $40 million. Investment in companies specialising in artificial intelligence and computer chips has jumped 46 per cent to about $10 million. This includes popular AI stocks such as Nvidia, TSMC, UiPath, and ASML.

Indian investments on Stockal, another online platform that enables direct investment in global equities, have risen 50-60 per cent this year. Some of this money was initially parked in cash as a dollar hedge but began to be deployed in equities, predominantly technology stocks, in the second half of the year.

“In the middle of the year, 15 per cent of our customers’ assets were in cash and 10-15 per cent in technology stocks. Some of this cash component has also made its way into technology stocks. We have seen customers’ portfolios go up 6-7 per cent in the last couple of months because of the tech rally,” said Sitashwa Srivastava, co-founder, Stockal.

Tesla continues to be a favourite for both seasoned and new investors. About 35 per cent of active investment accounts on Vested hold Tesla shares. About 12 per cent of new Indian investors on Vested buy Tesla According to Stockal, 8-9 per cent of its customers’ equity assets is always in Tesla because the shares have historically been volatile and offer ample opportunities to make money.

Although investments in exchange-traded funds (ETFs) are growing slower compared to individual stocks, some are bucking the trend. QQQM and SQQQ, for instance, have seen a 300 per cent increase in investments this year, according to Vested.

“We are seeing a bit of herd mentality, with investors lapping up tech shares despite steep valuations. Investors believe that these stocks will continue to rally going forward,” said Srivastava.