UK high street stocks surge as investors hunt bargains amid AI and global markets

LONDON — British investors piled into high street stocks in 2025, with data from IG showing a sharp jump in the number of holders in several familiar names. Sainsbury’s led the pack, with a 156% year-over-year increase in holders, helping lift the stock about 18% from the start of the year. Sausage roll pioneer Greggs saw holders rise 148%, while newsagent WH Smith attracted a 123% jump in ownership. By contrast, the price performance of those stocks has been mixed: Greggs is down roughly 38% this year, and WH Smith has fallen about 44% after a summer accounting error overstated North American trading profits by about £50 million.

Sainsbury’s, Greggs and WH Smith were among the year’s top breakout names on IG’s notes, with Marks & Spencer also showing a notable 76% jump in holders not in the top ten. Chris Beauchamp, chief market analyst at IG, said the trend signals a shift: “The Magnificent Seven have dominated headlines for the past few years, their valuations surging on the back of AI fever. But while US tech grabbed the attention, British stocks have quietly attracted solid interest from investors on IG’s platform, a reminder that quality companies aren’t the exclusive preserve of Silicon Valley.” He noted that the FTSE 100 has materially outperformed the S&P 500 over the past year, returning about 20.5% versus 15.6%, with currency moves and energy stocks helping the UK market, alongside domestic investor resilience. The broader takeaway, he added, is that some money has been flowing into UK equities rather than chasing US names.

Investors continued to eye broader US market strength, IG said, with UnitedHealth leading the list of breakout US stocks. The health insurer posted a 504% surge in holders over the past twelve months, though its shares are down around 34% on the year. Beauchamp framed the divergence as part of a wider picture: “Whether this marks a turning point or a temporary shift remains to be seen. The FTSE’s gains have been helped by currency moves and energy stocks, not just a sudden renaissance in British corporate performance. But after years of underperformance, any period where UK equities hold their own against US indices deserves attention.”

The AI boom also fed appetite for companies positioned to benefit from demand growth. BigBear AI, an AI security firm, saw holders rise 224% over the year, even as revenue declined about 20% year over year. The stock nonetheless climbed roughly 33% so far in 2025. In other AI-adjacent areas, investors piled into quantum computing plays, signaling a belief that the sector could unlock next-generation processing power. Quantum Computing (US) posted a 153% surge in holders, while D Wave Quantum rose 126%, Oracle Corp 124% and Rigetti Computing 190%.

The activity covered a mix of traditional retailers and technology names, with a cross-section of platform-level investing also featured in the notes. Aj Bell, Hargreaves Lansdown, interactive investor, Freetrade and Trading 212 are highlighted as platforms where DIY investors can access these trends, reflecting the ongoing shift toward at-home investing across the UK.

Towards year-end, market watchers cautioned that the gains in UK equities were helped by a combination of currency moves and energy stocks, rather than a wholesale reopening of confidence in the domestic economy. Still, the year’s data suggested a broadening base of investors looking for value in domestic names and AI-enabled businesses, even as some individual stocks remained under pressure on performance or accounting-related headlines. As the calendar turns, analysts say the key question is whether this renewed interest in UK equities endures into 2026, or whether flows revert to chasing overseas narratives amid renewed macro volatility.