UK retail investors are brushing aside concerns over an AI bubble, backing artificial intelligence as the sector most likely to deliver the strongest growth over the next six months, according to the latest biannual sentiment survey from investing and trading platform IG.
IG surveyed 1,200 UK investors and asked them to identify the three sectors they expect to deliver the strongest growth in H2. AI-related industries topped the rankings, with 45% of investors including the sector among their top three picks, ahead of defence and military (42%) and semiconductors (37%).
The findings mark a reversal from IG’s previous two surveys, when defence and military ranked as investors’ most favoured growth sector. The shift comes despite heightened geopolitical tensions following the recent Iran conflict, suggesting investors remain confident the AI investment story has further to run.
Table shows the sectors UK investors expect to see the strongest growth over the next six months
| Now | Six months ago | 12 months ago | 18 months ago | |
| #1 | AI-related industries (45%) | Defence & military (41%) | Defence & military (55%) | AI-related industries (40%) |
| #2 | Defence & military (42%) | AI-related industries (39%) | AI-related industries (45%) | Defence & military (37%) |
| #3 | Semiconductors (37%) | Semiconductor equipment (28%) | Semiconductor equipment (29%) | Semiconductor equipment (29%) |
The survey was conducted while diplomatic efforts to de-escalate tensions in the Middle East were ongoing, which may have tempered expectations for further gains following the sector’s strong run.
Confidence in AI extends beyond the next six months, with two-thirds (67%) of investors expecting AI-related investments to deliver strong or moderate growth over the next year. AI is also increasingly becoming a mainstream investing tool, with almost half (45%) of investors now using AI to help inform their trading and investing decisions – up 16 percentage points year-on-year.
“AI has come storming back to the top of investors’ minds as OpenAI and Anthropic look to IPO, while the huge capex plans of megacap tech suggest the mania isn’t going away. Bubble fears come back periodically but not sufficiently to deter investors it seems. Meanwhile defence continues to be viewed as a strong place to be as Europe’s Trump-inspired spending splurge bears fruit.”
Chris Beauchamp, Chief Market Analyst at IG
