Are Gen Z into stocks? Yes, most certainly. More than half of Gen Z owns stocks, and 41% primarily invest in individual stocks, according to a recent report from the CFA Institute. Some of the favorite Gen Z stocks are the tech companies, including the likes of Apple, Google and red-hot NVIDIA. Gen Z stocks are the one that are aiming to make bank in the stock market just like generations before.
What the research says on stocks gen Z buy?
Some of that interest, for better or for worse, is driven by “fear of missing out” or “FOMO”, with 50% of Gen Z investors saying they have made a “FOMO-driven investment.”
And you can say the same for previous generations as well.
As per report, the popular gen Z stocks to buy are the tech stocks. For Gen Z, millennials and Gen X investors, the top stocks they are holding are the same seven tech companies: Tesla, Apple, Amazon, Microsoft, NVIDIA, Alphabet (Google) and Meta (Facebook).
A Bank of America survey of fund managers from earlier this year showed favorite gen Z stocks that made gains and of tech companies amid excitement around AI. As we all know, 2023’s strong first half performance was primarily a result of gains from just a half-a-dozen companies, mostly buzzy tech names like Meta.
So what are the top gen Z stocks to buy?
NVIDIA and Microsoft: AI hysteria
AI-related stocks have skyrocketed this year, and two stocks among the biggest winners of the latest investor frenzy still have room to run pros contend.
“All the rage this year and going forward is and will be AI,” Ken Mahoney of Mahoney Asset Management, told Yahoo Finance Live, naming NVIDIA (NVDA) and Microsoft (MSFT) as his top picks for Gen Z investors.
NVIDIA’s growing dominance in the AI chip race and Microsoft’s $10 billion investment in OpenAI has helped propel these two gen z stock price since the start of the year, with shares surging 195% and 42% respectively.
“We see the market really ramping into NVIDIA and Microsoft as they will be at the forefront of this AI revolution,” Mahoney added. “While NVIDIA’s P/E is high, there aren’t any other cars speeding as fast down the highway.”
NVIDIA is now among the top five most owned stocks across generations amongst other tech stocks for gen Z, according to a new report from Apex. In addition to NVIDIA being one of the most held gen Z stocks, a separate report from Reuters found that it was one of the top traded gen Z stocks investors in May.
EV Boom: Tesla
To no one’s surprise, Tesla (TSLA) should be a top amongst gen Z stocks to buy, according to Jay Woods, Freedom Capital Markets Chief Global Strategist.
You’ve got to invest in a company that you believe in and “they [Gen Z] love the cars, the technology and Elon Musk,” Woods told Yahoo Finance Live.
The popular gen Z stock price has more than doubled this year, surging about 125% since the start of January. That blistering rally has prompted a handful of analysts to move to the sidelines. But despite skepticism about its current valuation, many still see long term opportunity for the gen Z stocks investors seeking to own what they know and trust.
Barclays analyst Dan Levy, who downgraded the stock last month, wrote in a client note that the team still sees “Tesla as the long-term winner amongst carmakers in the race to an EV world,” while Morgan Stanley’s Adam Jonas said Tesla is still a “must own” in the auto space as a stocks for gen Z.
Sounds ripe for the picking for Gen Zers.
Once again, Gen Z would be wise in taking advantage of important demand trends.
How is Gen Z investing
The authors of the Apex report say Gen Z’s investing behavior is important to study, even though these young investors generally don’t have much money in the markets yet compared to older generations yet for gen Z stock price is not a deterrent.
“This is a generation that invests in disruptors and against expected trends and over $70 trillion in assets will be passed down to this generation in the coming decades,” Connor Coughlin, an Apex executive, said in the report.
Some more gen Z stocks
The three gen Z stocks that moved up the most in the first quarter of 2023 were:
- Coinbase
- Marathon Digital (another crypto company).
- Crowdstrike, which is a cybersecurity firm.
