Three decades ago, the proliferation of the internet began reshaping corporate America by opening new sales and marketing channels for businesses.
However, the internet also broke down information barriers that had previously existed between Wall Street and Main Street. With income statements, balance sheets, management commentary, investor presentations, and regulatory filings all available at the click of a button, the retail investor revolution was born.
According to the five authors of "The Retail Investor Report," approximately 30 million retail investors opened new brokerage accounts in 2020 and 2021, combined. The report found that retail investors accounted for 25% of total equities trading volume in 2021, nearly double the share from the previous decade.
Image source: Getty Images.
Brokerage firms understand the importance of attracting retail investors -- and few have done a better job than Robinhood Markets. Robinhood's commission-free trades (on major U.S. exchanges) and the ability to purchase fractional shares have made it a popular investing platform for everyday investors.
What's particularly intriguing about Robinhood is its "100 Most Popular" leaderboard, which displays the 100 stocks and exchange-traded funds (ETFs) that are most commonly held on its platform. According to Robinhood's retail investors, the following five "magnificent" stocks and one ETF are must-owns for 2026.
Nvidia
It probably comes as little surprise that "Magnificent Seven" member and the face of the artificial intelligence (AI) revolution, Nvidia (NVDA 0.11%), is the most held stock on Robinhood. Shares of Nvidia have rallied 1,200% since the beginning of 2023.
Nvidia's graphics processing units (GPUs), which act as the brains for AI-accelerated data centers, are essentially unrivaled. No external competitors have come particularly close to matching the compute capabilities of Hopper (H100), Blackwell, and Blackwell Ultra, with some analysts estimating Nvidia controls 90% or more of all GPUs deployed in enterprise data centers.
The company's CUDA software platform has also played a crucial role in its success. This is the tool developers are using to maximize the compute potential of Nvidia's hardware. Think of CUDA as an anchor that keeps customers within Nvidia's ecosystem of products and services.
While Nvidia's growth forecast portends another rock-solid year, historical headwinds for AI stocks may spoil the party.
NASDAQ: TSLA
Key Data Points
Tesla
Before Nvidia was the most held stock on Robinhood, electric-vehicle (EV) maker Tesla (TSLA 0.69%) held the No. 1 position for years.
First and foremost, everyday investors have come to appreciate Tesla's first-mover advantage in the EV space. It's North America's leading EV company, with close to 1.8 million deliveries in back-to-back years (2023 and 2024). Tesla's EV segment is recurringly profitable, as well, which is something even legacy automakers are struggling with regarding their EV operations.
Retail investors are likely also excited about CEO Elon Musk expanding his company beyond selling and leasing EVs. Tesla has pushed into the robotaxi industry, is in the process of developing humanoid robots to handle repetitive tasks (known as Optimus), and has a burgeoning line of energy generation and storage products.
Arguably, though, Tesla remains a very risky investment. It's an exceptionally pricey stock, and Musk has far more unfulfilled promises than visions that have been realized.
Apple has spent over $816 billion to retire 43.9% of its outstanding shares. AAPL Shares Outstanding data by YCharts.
Apple
Another Magnificent Seven component that was once the most held stock on Robinhood's 100 Most Popular leaderboard is tech giant Apple (AAPL 0.40%).
It's not uncommon for everyday investors to buy what they know -- and most consumers are well aware of Apple's products. Since Apple introduced a 5G-capable version of the iPhone in the latter half of 2020, it's held a roughly 50% or greater share of smartphone sales in the U.S. Apple has an exceptionally loyal customer base and has historically maintained premium pricing power.
Though there's plenty of focus on Apple's rapidly growing services segment, which emphasizes high-margin subscription services, it's the company's market-leading capital-return program that does a lot of the heavy lifting. Since initiating a share-repurchase program in 2013, Apple has spent over $816 billion to retire close to 44% of its outstanding shares. This has dramatically increased its earnings per share over the last 12 years.
The concern for retail investors with Apple is that it's no longer a bargain. A trailing 12-month price-to-earnings (P/E) ratio of 37 is historically high for a company whose growth engine had stalled in recent years.
Image source: Amazon.
Amazon
The fourth most held stock on Robinhood, and another "magnificent" company to own in the new year, is e-commerce colossus Amazon (AMZN 0.37%).
Most folks know Amazon as the world's leading online retail marketplace. Amazon draws in billions of monthly visitors and was expected to account for just over 40% of U.S. e-commerce market share in 2025, according to UpCounting. Although online retail sales generate boatloads of revenue for the company, a majority of its operating cash flow and income derive from its higher-margin ancillary segments.
Nothing is more important to Amazon than its cloud infrastructure service platform, Amazon Web Services (AWS). The world's No. 1 cloud infrastructure service platform by total spend is pacing $132 billion in annual run rate revenue and consistently accounts for over half of Amazon's operating income, despite representing less than a fifth of its net sales. The incorporation of generative AI solutions should only enhance AWS's growth potential.
Relative to its future operating cash flow, Amazon stock appears to be historically inexpensive.
NASDAQ: MSFT
Key Data Points
Microsoft
The fifth member of the Magnificent Seven that's a must-own in 2026, based on the portfolios of Robinhood's retail investors, is Microsoft (MSFT +0.04%).
Microsoft's growth story is centered on cloud computing and the integration of AI into its various high-margin services and platforms. Azure, which is the world's No. 2 cloud infrastructure service platform (behind only AWS), has been growing like a weed. Though Microsoft doesn't break out specific revenue data for Azure, sales grew by 40% in the fiscal first quarter (ended Sept. 30), excluding currency changes.
However, Microsoft's legacy segments continue to play a crucial role in its success. While the growth heyday for Word and Office is long gone, these divisions still provide high-margin software and very predictable operating cash flow. As of November 2025, according to GlobalStats, Windows held a nearly 70% share of the global desktop personal computer operating system market.
While Microsoft stock isn't cheap (its trailing 12-month P/E ratio is 35), its sustained double-digit sales growth rate offers a presumably safer foundation than that of Apple.
NYSEMKT: VOO
Key Data Points
Vanguard S&P 500 ETF
Rounding out the top six holdings on Robinhood by retail investors is the most popular ETF to own in 2026, the Vanguard S&P 500 ETF (VOO 0.10%).
The Vanguard S&P 500 ETF aims to mirror the performance, less fees and expenses, of the benchmark S&P 500 (^GSPC 0.06%). It provides a way for retail investors to gain instant diversification in 500 of the most influential companies leading America's economy forward. Over the last 30 years (1995-2024), the S&P 500 has averaged an annual return of roughly 10.5%.
The Vanguard S&P 500 ETF also has an attractively low net expense ratio when compared to other S&P 500 index funds. Its 0.03% net expense ratio means only $0.30 of every $1,000 invested goes toward management/marketing fees on an annual basis.
Although the S&P 500 has never had a negative total return, including dividends, over any rolling 20-year period, the historical priciness of the stock market could weigh on this popular ETF in 2026.
