Nasdaq-100 Shows Signs of Recovery Amid Economic Uncertainty
The Nasdaq-100 experienced a significant drop earlier this year following the Liberation Day tariffs, leading to a bear market. However, in recent weeks, the index has rebounded and is now less than 5% from its peak in February.
Despite ongoing economic uncertainties due to trade negotiations and weakened consumer sentiment, several promising investments can be found within the index, which encompasses the 100 most valuable Nasdaq stocks.
Top Investment Picks in the Nasdaq-100
Here are two Nasdaq-100 stocks worth considering for investment.
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1. The Trade Desk
The Trade Desk (NASDAQ: TTD) faced a decline in share prices earlier this year after the ad tech company missed its fourth-quarter guidance. Management explained that the shortfall resulted from internal errors and delays rather than competition or structural market changes.
In its first-quarter earnings report, the company exceeded estimates with revenue surging 25% year over year to $616 million, surpassing expectations of $575.3 million.
Historically, The Trade Desk has been a strong performer in the stock market. Its competitive edge lies in being a leading independent demand-side platform in ad tech. The company has heavily invested in AI, with two-thirds of its customers currently utilizing the Kokai AI platform. This technology can analyze approximately 17 million ad opportunities per second, and management anticipates it will become the most powerful buying platform in the advertising sector by year-end.
As pressure mounts on Alphabet’s Google—known for its substantial market share in ad spend—The Trade Desk seems positioned to benefit. Google has been labeled an illegal monopoly within U.S. District Court, potentially facing hefty fines, divestitures, or reorganization. Any setbacks for Google could favor The Trade Desk significantly.
Over the long term, The Trade Desk appears poised to capitalize on trends in the digital advertising market, suggesting potential for strong growth. Remarkably, following its recent rebound, the stock remains down 46%, indicating a considerable opportunity for recovery.
2. Advanced Micro Devices
Advanced Micro Devices (NASDAQ: AMD) has also seen a sharp decline from its peak, akin to The Trade Desk. Initially soaring during the AI boom, AMD didn’t meet the high expectations then, but it is currently demonstrating solid growth, and the stock is now more attractively priced.
In the first quarter, AMD’s revenue surged 36% year over year to $7.44 billion, with its data center segment particularly thriving; data center revenue jumped 57% to $3.7 billion due to demand for EPYC CPU and Instinct GPU chips.
Moreover, AMD’s growth trajectory appears to strengthen further. The company recently inked a $10 billion collaboration deal with Humain, a Saudi AI firm. Additionally, the acquisition of ZT Systems positions AMD better in the data center market. Notably, Elon Musk mentioned that his XAi startup plans to procure a substantial number of GPUs from AMD and Nvidia.
A $6 billion share repurchase authorization signals AMD’s intention to capitalize on favorable stock pricing conditions. Given the recent downturn, AMD now trades at a forward P/E ratio of under 30 based on adjusted earnings, which seems appealing for a company well-positioned to benefit from the AI boom.
Considerations Before Investing
Before investing in Advanced Micro Devices, it’s important to consider market recommendations:
Currently, analysts have identified what they believe are the 10 best stocks to buy, and Advanced Micro Devices is not included. Investors should weigh these recommendations as potential indicators of future performance.
Investing in stocks requires careful consideration, and while Advanced Micro Devices demonstrates strong potential, its exclusion from this list may warrant further evaluation.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
