Three-quarters of FTSE 350 firms have beaten Nvidia this year as UK shares rally

British shares are having a stronger year than many expected. More than three-quarters of the companies in the FTSE 350 have outperformed Nvidia, the world's biggest chipmaker and the poster child of the AI boom, so far in 2026, according to an analysis by City AM.

At the close of trading on Monday 9 November, 68 members of the FTSE 100 and 202 members of the FTSE 250 had beaten Nvidia's share performance since the start of the year. London's blue-chip index was up 9.3% on an equal-weight basis, while Nvidia's shares had fallen by more than 7%.

A shift to "stodgier" sectors

Nvidia's shares have come under pressure in recent months amid concerns that the AI investment boom is running out of steam, falling from a peak of around $240 at the start of October to around $180 a month later. They fell sharply again on Monday after a personal scandal involving chief executive Jensen Huang, which wiped as much as $200 billion off the company's value in minutes.

Russ Mould, investment director at AJ Bell, told City AM that the FTSE's performance "is not something many may have predicted at the start of the year."

"There has been a worldwide shift toward stodgier sectors in the second half of the year, notably healthcare and consumer staples, and away from tech, so it will be interesting to see if that trend continues, or whether much lower share prices, and thus valuations, in some instances tempt some investors to buy on the dip," he said.

Why it matters to savers in Birmingham

For years, the London market has been seen as unfashionable, with investors favouring fast-growing American technology firms. A strong year for UK shares matters well beyond the City. Millions of people, including workers across Birmingham, hold UK shares indirectly through workplace pensions, stocks and shares ISAs and other investments.

The FTSE 100 is heavy in sectors such as banking, energy, mining, healthcare and consumer goods, the kind of established businesses that have done well as investors have become more cautious about high technology valuations. The FTSE 250 is home to more medium-sized and UK-focused firms.

A word of caution

Share prices rise and fall, and one year's winners can be next year's laggards. Mr Mould pointed to a number of risks hanging over the AI trade, including higher interest rates, questions over how the spending boom will be funded and the prospect of tougher regulation in the US.

The usual advice applies: investing is for the long term, diversification spreads the risk, and anyone unsure about their pension or savings should seek independent financial advice rather than chase the latest trend. But after years of being written off, the London market's resilience in 2026 is welcome news for British savers and the companies that make up the index.