UAE retail investors buy the dip on AI infrastructure and enterprise tech inQ1 despite ‘SaaSpocalypse’ fears

Abu Dhabi, United Arab Emirates – April 14, 2026: Against a backdrop of geopolitical conflict in the Gulf and rising investments in AI, retail investors increased their exposure to software and AI infrastructure stocks whose share prices have taken a hit in the first quarter of 2026, according to the latest data from trading and investing platform, eToro.

eToro looked at which companies saw the largest proportional change in holders quarter-on-quarter (table 1)
and also examined the 10 most held stocks on the platform among users based in the UAE (table 2).
Software and SaaS names featured prominently in the Q1 top risers list, suggesting UAE investors used the
sector-wide sell-off to buy the dip. ServiceNow topped the list with a 125% jump in holders as its share price
fell around 32% in Q1, although in the same quarter it announced partnerships with AI heavyweights OpenAI
and Anthropic. Adobe ranked third (54% increase in holders) even as the stock came under pressure over
concerns about its ability to defend its core software business against AI disruption. Shares were down about
25% by mid-March, along with news that the chief executive would step down, suggesting UAE investors were buying during the pullback.

AI infrastructure was another clear theme in Q1: Super Micro Computer (+65%) in second place, followed by
Micron (+39%) in fifth, and Oracle (+38%) in sixth. Investors appear to have bought into a late-quarter sell-off with Super Micro Computer. The stock had traded largely sideways before tumbling 33% after US prosecutors charged the co-founder over an alleged scheme to smuggle Nvidia-powered servers to China. Oracle also fits the buy-the-dip theme. The stock has been volatile amid concerns about spending tied to its AI cloud expansion.
The standout exception was Micron, one of the few names in the group to post stock price gains over the
quarter. The move was driven by stronger momentum from surging demand for AI memory chips and limited
new supply.

George Naddaf, Managing Director at eToro (MENA), said: “In Q1, UAE investors approached technology with
selectivity and opportunism. 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.”
He added: “Despite talk about the ‘Saaspocalypse’, the idea that AI will dismantle traditional SaaS business
models, UAE investors showed sustained interest in software. They are honing in on companies that they
believe have a clear role in the tech value chain and potential for monetisation. While geopolitical tensions
added to market volatility, the pattern in holdings suggests UAE investors were driven more by sector conviction than by a broad risk-off mindset.”

Other Q1 risers spanned multiple sectors. Investors pushed e.l.f. Beauty to fourth place by increasing holdings 52%. They also drove gains in Duolingo, Gorilla Technology, Hims & Hers Health, and SoFi Technologies, highlighting interest in companies across digital education, IT services, telehealth, and fintech.
Q1’s ‘top fallers’ list featured a mix of industries. Twist Bioscience Corporation led the pack with a 90% decrease in holders, followed by Okta (-49%) and CoreWeave (-47%). BioMarin Pharmaceuticals also saw a big decline, with holders down 35% QoQ.
The most widely held stocks were largely unchanged from last quarter, with only minor reshuffles in the top
half. NVIDIA held onto first place, while Amazon rose to second, and Microsoft to fourth. Tesla slipped to third and Apple to fifth, while positions six to ten remain unchanged.
Naddaf remarked: “Local investors’ selective approach to technology is further evidenced by the fact that AI
and tech companies feature in both the risers and fallers lists. They appear to be making efforts to distinguish
between the winners and laggards of the AI revolution.”

Looking at the most held ranking, he added: “It suggests UAE investors are continuing to treat these names as core positions rather than short-term trades. NVIDIA held onto the top spot, while Amazon moved up to
second and Microsoft climbed to fourth, but the ranking is largely unchanged. 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.”

Past performance is not an indication of future results.

The tables compare data from the eToro platform on the final day of Q1 2026 with the final day of Q4 2025.
The data refers to funded accounts of eToro users in the UAE.
The data in the first table shows the 10 stocks that have seen the largest proportional increases and decreases
in holders on the eToro platform quarter-on-quarter (Q1 2026 vs Q4 2025).
The data in the second table shows the top 10 most-held stock positions (open positions) by investors on the
eToro platform at the end of Q1 2026. As the vast majority of stocks traded on eToro are real assets, this data
does not include positions held as CFDs. Stock price data from Yahoo Finance.
All data accurate as of after market close on 31 March 2026.

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