Considering how much media coverage Nvidia (NVDA) and Palantir Technologies (PLTR) have been getting this year, it’s not surprising that retail investors have gravitated toward these two mega-cap stocks.
However, according to the Schwab Trading Activity Index (STAX), which tracks the behavior of Schwab’s self-directed clients, Nvidia is the clear winner among these two tech giants.
Joe Mazzola, director of trading & derivatives strategy at Schwab, notes that while investors bought a large number of shares in both companies, the net buys for Nvidia exceeded Palantir by over 50%.
Overall, STAX climbed for the third straight month in August and reached a five-month high, according to Schwab.
This happened despite the S&P 500’s most recent rally slowing last month.
In fact, STAX significantly outgained the S&P in August, rising 4.55% versus 1.12% for the index.
Schwab attributed this difference to the possibility that its clients were “playing catch up and adding more risk than previous months after STAX growth trailed the S&P 500 index every month since February.”
STAX rose to 43.69 in August, compared to 41.79 in July. This was the best showing since hitting 48.36 in March.
STAX also hasn't declined week over week since late June, which puts it at nine positive weeks.
Mazzola sees investor confidence growing as market volatility has been retreating. The Cboe Volatility Index (VIX) registered a 2025 low of 14.12 late in August.
It peaked above 60 in April, when President Trump’s “Liberation Day” reciprocal tariffs sent the markets reeling.
Mazzola also noted that both Coreweave (CRWV) and Bitmine Immersion Technologies (BMNR) have become new entrants in the net-buy top 10 list among the firm’s self-directed clients, which has helped push STAX up.
"Both of these stocks have exhibited higher amounts of volatility relative to the S&P 500 which can lead to a higher STAX score," he said.
In addition to Nvidia and Palantir, Schwab’s clients also bought up shares of Amazon (AMZN) and UnitedHealth Group (UNH) – with Mazzola pointing out that clients were prone to buying the dip and selling stocks that “swung higher.”
Apple (AAPL) was the biggest net-seller among Schwab clients for the second straight month, while Tesla (TSLA) and Ford (F) were also sold off.
This indicates a reversal for Tesla which was the second-highest net-buy in July, according to STAX data.
Schwab investors have sold off tech stocks in high numbers since December and the sector was by far the most net-sold in dollar value in August. After tech, the strong selling came from consumer discretionary – which Schwab attributes to the Tesla sell-off – and then energy, materials, consumer staples, real estate and utilities.
Communication services led net-buying for the month, followed by health care, financials and industrials.
Only four of 11 S&P sectors were net-buys last month, per STAX data.
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