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The Resilience of Tech Stocks Amid Nasdaq’s All-Time High

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The Nasdaq Surge Amidst AI Enthusiasm

The Nasdaq Composite saw a robust performance in 2023, branching out into this year with renewed vigor. On Mar 1, the tech-heavy index closed 1.1% higher at 16,274.94 points after hitting an all-time high of 16,091.92 in the previous session, marking an 8.4% year-to-date leap following an impressive 43.4% surge in 2023 – its best run since 2020.

While Wall Street scaled new heights with the S&P 500 and the Dow setting records early in February, the Nasdaq was a tad sluggish to join the race. However, February’s last day witnessed a 6.1% leap, firmly placing the index back on its growth trajectory.

Enter 2024, Nasdaq’s relentless rally is primarily buoyed by the prevailing zeal surrounding artificial intelligence (AI), providing a robust push to major tech stocks and the overall market.

Driving Factors Behind the Tech Rally

Despite differing opinions among AI experts, particularly regarding the potential of generative AI, the fervor surrounding the sector has been palpable over the past year. Many believe that the true capabilities of AI are yet to be fully realized, presenting a ripe field of opportunities for tech companies to usher in premium products.

Foremost among the torchbearers of the AI revolution is NVIDIA Corporation, with its groundbreaking generative AI chipsets leading the charge. The company’s stellar fourth-quarter 2023 earnings and positive outlook have not only propelled its own success but also inspired other players, thereby bolstering the broader market.

Furthermore, the proliferation of smart devices necessitating advanced computing and learning capabilities for functions like face detection, image recognition, and video analytics further fuels the momentum in the semiconductor industry. This resurgence comes as a solid rebound after a relatively lackluster performance until the first half of 2022.

Investing in Tech Titans

Against this backdrop, savvy investors may find solace in Nasdaq stocks like NVIDIA Corporation, Netflix, Inc., Meta Platforms, Inc., Microsoft Corporation, and Logitech International. These tech behemoths exhibit strong potential for 2024, sporting Zacks Rank #1 or 2 and promising handsome returns in the coming year.

NVIDIA Corporation

Renowned as a global leader in visual computing technologies, NVIDIA Corporation has transitioned from PC graphics to AI-based solutions, catering to high-performance computing, gaming, and virtual reality platforms. With an estimated earnings growth rate of 79.2% this year, NVIDIA is poised for further success, presently holding a Zacks Rank #1.

Netflix, Inc.

Pioneering the streaming space, Netflix, Inc. continues to dominate despite the emergence of competitors like Disney+ and Apple TV+. Aggressively expanding its portfolio of original shows, Netflix boasts an expected earnings growth rate of 41.6% for the current year and a Zacks Rank #1.

Meta Platforms, Inc.

As the world’s largest social media platform, Meta Platforms, Inc. boasts a comprehensive portfolio including popular apps like Instagram and WhatsApp. With an expected earnings growth rate of 34.1% for the current year and a Zacks Rank #1, Meta Platforms is cementing its position in the tech landscape.

Microsoft Corporation

One of the leading technology providers globally, Microsoft Corporation dominates the PC software market and cloud services. Microsoft’s expected earnings growth rate of 18.6% for the current year positions it as a stalwart in the industry, holding a Zacks Rank #2.

Logitech International

As a pioneer in peripherals for computers and other digital platforms, Logitech International offers innovative products in a wide array of categories. With an expected earnings growth rate of 20.5% for the current year and a Zacks Rank #1, Logitech International continues to push boundaries in the tech sector.

Zacks Investment Research – The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.