Retail Investors Are Beating Wall Street Benchmarks With AI Stocks. Why That Could Change Soon.
Study after study suggests that consistently beating the market through stock picking is exceptionally difficult. Yet in 2026, retail investors are putting that assumption to the test—and, so far, they are winning. Recent research from JPMorgan indicates that everyday investors h
Study after study suggests that consistently beating the market through stock picking is exceptionally difficult. Yet in 2026, retail investors are putting that assumption to the test—and, so far, they are winning. Recent research from JPMorgan indicates that everyday investors have outperformed several widely followed benchmark strategies, helped by a simple but powerful approach: concentrate on the biggest beneficiaries of the AI boom rather than spreading capital across broad index exposure.
That outperformance has not been driven by obscure names or lucky one-off trades. Instead, retail investors have leaned heavily into a handful of core AI winners—particularly semiconductors and AI infrastructure plays like Micron (MU) and Nvidia (NVDA)—where fundamentals have remained strong, and earnings expectations have continued to rise. In numerous instances, retail traders have also shown unusual conviction, holding onto positions through volatility instead of rushing to take profits, suggesting they believe the AI rally still has room to run.
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So, can retail investors keep beating Wall Street benchmarks by sticking with AI leaders—or is the easy money already made? Let’s take a closer look.
Study after study has shown that stock picking is extraordinarily difficult, with the vast majority of active fund managers historically failing to consistently outperform the S&P 500 ($SPX). According to data from S&P Dow Jones Indices, 79% of U.S. large-cap equity fund managers underperformed the S&P 500 in 2025. To that, retail investors respond, “What, like it’s hard?” And for good reason.
