BP (BP.L) and Legal & General (LGEN.L) were the favourite stocks among Fidelity investors in August as they sought to move away from technology funds.

The past two months have been particularly challenging for AI-related stocks, with concerns over the sustainability of their growth story leading to a rotation out of the highly valued "Magnificent Seven" stocks.

Nvidia (NVDA) lost $278.9bn (£211.9bn) on Tuesday in the biggest loss of value ever for a US stock as it plunged over 9.5%.

Amid fears over a potential US recession, Fidelity investors are diversifying their investments away from technology funds and into defensive strategies in August, the data showed.

When it came to ISA and SIPP investors, shares in BP and Legal & General showed to be the most popular in August. In third place, ISA investors went with Aviva (AV.L) and SIPP clients favoured miner Glencore (GLEN.L).

In the move away from tech, AlphaWave IP (AWE.L) the only technology stock on the list.

“In August, Fidelity investors demonstrated a shift in their investments, broadening their focus to include a diverse array of sectors such as consumer goods, technology, and industrials," Tom Stevenson, investment director at Fidelity International, said.

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Carnival (CCL.L), benefiting from a surge in cruise tourism, also made it into the top 10 for ISA investors in August.

Motorpoint Group (MOTR.L) reflected the strong performance of the used car market despite a decrease in revenues and widened pre-tax losses.

For SIPP investors, Crest Nicholson (CRST.L), a residential housebuilder, emerged as a new entrant following its rejection of a takeover bid from competitor Bellway (BWY.L).

Tech-focused funds, which had dominated Fidelity ISA and SIPP investments for much of the year, saw a decline in investor enthusiasm. The Legal & General Global Technology Index Trust (0P0000XAFS.L), a consistent top-seller, saw reduced interest as investors began to pivot towards safer, more diversified options.

Stevenson said: “The tech sector has enjoyed a remarkable run, but August was a rocky period. Nvidia, in particular, has been a key driver of market movements this year. The company, which briefly became the world’s most valuable, saw its market capitalisation drop by around $750bn in July and August, only to recover within a few trading days.”

Stevenson noted a "classic shift towards safety" as investors sought to preserve capital amid market volatility. This trend has renewed interest in money market funds, with the Royal London Short Term Money Market Fund (0P0000NRQO.L) and the Fidelity Cash Fund (0P00018MM4.L) becoming popular choices among Fidelity's ISA and SIPP investors.