Buckle up for a Wild Ride: Here Are the Most Volatile Stocks in 2023 So Far

Key takeaways

• We’ve seen bigger-than-normal swings in the stock market so far this year
• Big Tech, EVs and regional banks have proven to be the most volatile stocks so far
• The best strategy is to diversify your portfolio as much as possible to avoid market swings

You may have noticed that the stock market’s been all over the place this year — and that might be putting it mildly. We’ve seen huge gains and massive falls as companies struggle to stay afloat in these uncertain times, while others are buoyed by the changing headwinds.

We’ve got the lowdown below on what the most volatile stocks have proven to be this year and how to avoid your portfolio meeting a grisly fate.

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2023’s most volatile stocks

Tech companies

Big Tech has been more volatile in the last 12 months thanks to a mix of a bad economy, AI developments and earnings reports. We all saw Google wipe off $100 billion in value when it messed up its AI chatbot launch, and Microsoft has seen some sharp dips this year as the two companies play off one another to reach the top of the AI market.

And while everyone loves Nvidia at the moment — the stock is up 115% just this year — its earnings report could send the share price tumbling. It’s faced volatility in the past, which is enough to make some investors nervous.

EVs

Tesla has always swung wildly, with this trend continuing into 2023. Even though the stock has gained back some of last year’s losses, Tesla saw a 4% dip after its so-so Q1 report and the share price tends to react to whatever latest headline billionaire CEO Elon Musk is involved in.

Smaller companies in the space have also struggled — Lucid’s stock price dropped 9% and Nikola shares slid 13% after both revealed dismal earnings for Q1.

Regional banks

Unfortunately, with March’s banking crisis fallout, more than one regional US bank falls under this category. PacWest shares fell off a cliff in March and are down nearly 64% overall in 2023, see-sawing as more good and bad news about deposits has emerged.

Zion Bank has suffered a similar fate: it’s down 38% since the start of this year but has climbed 24% in the last five days thanks to the good news about Western Alliance’s deposits situation.

How to beat market volatility

Volatile stocks can give massive gains, but they also carry the risk of catastrophic lows. The best way to hedge against market swings is to diversify your portfolio across different sectors and asset classes where possible.

For example, if your portfolio is heavily exposed to tech stocks, you might look to take on some lower-risk stocks like utilities or consumer goods — especially with talks of a recession persisting. Researching precious metals, property and even crypto can provide decent exposure to alternative assets if the stock market remains volatile.

The bottom line

A volatile stock market can be exciting, but it’s not for the faint-hearted investor. Instead focus on diversifying your portfolio to avoid overexposure and market swings. Not to mention, using AI investing tools can help you avoid wild volatility by doing the heavy lifting for you.

If you’re looking for a low-risk investment strategy, Q.ai’s Value Vault Kit lets you invest like legendary investors without the upfront research. The AI sifts through the data and finds the best value stocks each week, then readjusts the holdings to help make sure you’re getting the most out of your investment.

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