Stocks Soar: Key Players in the Bull Market of 2023
This year has seen stock prices soar, affirming a bull market as major indexes hit record levels. The Dow Jones Industrial Average, made up of 30 significant large-cap stocks, surpassed the 40,000 mark for the first time and is currently up approximately 16% since January.
The encouraging trend may not slow down anytime soon. Historical data indicates that bull markets typically outlast bear markets by a substantial margin—almost nine years compared to less than two years, according to First Trust data. This implies that stock prices could continue to rise. Let’s examine three Dow stocks that have performed well this year and show promise for 2025 and beyond.
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1. Amazon
Amazon (NASDAQ: AMZN) is a leading force in e-commerce, boasting over 200 million members in its Prime service, with many more customers ordering without a subscription.
This year, the company’s stock has surged more than 35% after it reported significant quarterly revenue growth. Additionally, its investments in artificial intelligence (AI) have improved operational efficiencies, such as optimizing delivery routes, which collectively reduce costs.
Amazon’s past restructuring efforts continue to yield positive outcomes, and with the Federal Reserve’s recent interest rate cuts, consumers are expected to have more spending power. This increase in discretionary spending should further bolster Amazon’s sales.
2. Apple
Apple (NASDAQ: AAPL) maintains a strong position in the market, especially with its iPhone, which secured the top spot worldwide in market share last year, according to International Data Corp. The loyalty of its user base eagerly fuels anticipation for new device releases.
As Apple continues to incorporate AI into its ecosystem, its services revenue is expected to keep climbing, indicating further growth potential. Now, bolstered by a history of financial success and dividend offerings, Apple appears well positioned for future gains.
3. Nvidia
Nvidia (NASDAQ: NVDA) made its debut in the Dow this month, showcasing its formidable performance in recent years. As a leader in AI chips, Nvidia has consistently delivered triple-digit earnings growth and has committed to innovate by updating its top chips annually.
With Nvidia’s stock climbing 2,700% over the last five years and on track for a nearly 200% increase this year alone, it stands as a compelling option for future investors. The AI market, currently valued at $200 billion, is projected to grow to $1 trillion by the end of the decade, with Nvidia capturing around 80% of this segment. Its upcoming chip architecture, Blackwell, is poised to elevate its market position further.
Investors may not see Nvidia’s stock rise in a straight line, but the anticipated revenue from new product launches and an expanding market suggests the potential for continued growth.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Adria Cimino has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Apple, and Nvidia. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
