Why ASX investors are 'flocking back' to BHP shares and these other top stocks

BHP shares led the charge with the biggest increase in Aussie retail investor holdings in Q2.

| More on:
A mining worker wearing a hard hat, orange high vis vest and blue long-sleeved shirt raises his fists in celebration with an excited expression on his face

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

BHP Group Ltd (ASX: BHP) shares are rising fast on Aussie investors' radars.

That's according to the second quarter (Q2 2024) Top Stocks data just out from online investing platform eToro.

The data revealed that Aussies are continuing to invest in Nvidia Corporation (NASDAQ: NVDA) and big tech while also increasing their interest in S&P/ASX 200 Index (ASX: XJO) mining stocks.

Atop fast-rising interest in BHP shares, ASX lithium miners Pilbara Minerals Ltd (ASX: PLS) and Core Lithium Ltd (ASX: CXO) also counted among the top 20 stocks seeing a big rise in investor interest over the past quarter.

BHP shares see big surge in interest

According to the eToro report, BHP shares saw a 24% boost in Aussie retail investor holdings in Q2 compared to the prior quarter.

Retail investor holdings in Core Lithium shares gained 8%, while Pilbara Minerals shares increased 5%.

Commenting on the rise in interest in BHP stock, eToro market analyst Josh Gilbert said, "We've also seen investors flock back to local miner BHP as the downturn in China's real estate sector shows signs of slowing as the government continues to offer support to the sector."

Gilbert pointed to a recent rise in the iron ore price coupled with the sliding BHP share price as likely driving part of this increased interest.

"There is clearly still a long way to go for China's economy, but with iron ore prices rising in recent months, investors are seeing the weakness in BHP shares this year as an opportunity," he said.

As for international stocks like Nvidia…

Move over Apple

It's not just BHP shares that saw a big increase in interest in Q2.

eToro reported that over the quarter just past, Nvidia overtook Apple Inc (NASDAQ: AAPL) to become the second-most-held stock in Australia. Nvidia continues to dominate AI-related news, likely driving that increased interest.

Elon Musk's Tesla Inc (NASDAQ: TSLA) maintained its number one spot.

According to Gilbert:

Retail investors continued to flock to AI stocks in the second quarter of 2024, as businesses such as Nvidia and TSMC continue to reap the rewards of the biggest technology revolution we've seen for decades.

Taiwan Semiconductor Manufacturing Co (BCBA: TSMC) was the second largest riser for the quarter, enjoying a 25% increase in Aussie retail investor holdings over the three months.

And Gilbert forecasts this trend has some legs.

"We're unlikely to see this investor migration to AI stocks ease up anytime soon, as these stocks continue to deliver huge profits quarter after quarter, and other AI winners are sure to emerge in the years ahead," he said.

How have BHP shares been tracking?

Investors may be seeing good value in BHP shares, with the ASX 200 mining stock down 13% in 2024.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Nvidia, and Tesla. The Motley Fool Australia has recommended Apple and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Four people on the beach leap high into the air.

Here are my top 4 ASX shares to buy right now

Here are the four ASX shares I would buy today if I won the lottery.

Read more »

Lion roaring in the wild, symbolising a rising Liontown share price.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors once again pulled back from record highs today.

Read more »

Good news has these businesspeople cheering for joy, partying in a board room.
Bank Shares

2 uniquely Australian reasons why ASX 200 bank shares are outperforming global peers

Three of the Big Four ASX 200 bank shares hit new price milestones today.

Read more »

A group of friends party and dance in the desert with colourful confetti all around them.

ASX 200 to finish 2024 higher than expected: AMP

AMP says there were 3 factors that drove the ASX 200 to its new record high above 8,000 points this…

Read more »

a line up of job interview candidates sit in chairs against a wall clutching CVs on paper in an office setting.

Why did the ASX 200 dip on the latest unemployment figures?

The labour market remains stubbornly resilient with only a minute increase in unemployment last month.

Read more »

Man holding fifty Australian Dollar banknote in his hands, symbolising dividends, symbolising dividends.
Share Market News

Buy these top ASX ETFs for income in FY 2025

These ETFs could be worth a look if you're searching for income.

Read more »

A woman ponders over what to buy as she looks at the shelves of a supermarket.
Consumer Staples & Discretionary Shares

Have ASX investors missed their chance to buy Woolworths shares?

After a sharp recovery, Woolworths shares might not be on sale anymore...

Read more »

A rueful woman tucks into a sweet pie as she contemplates a decision with regret.

DroneShield shares taught me a $29,612 lesson. Stick to your guns

If only I knew what I know now, I'd be $29,612 better off.

Read more »