University of Kwazulu-Natal

History Says The Nasdaq Could Jump Higher In 2025 2 Artificial Msn

Bonisiwe Shabane
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history says the nasdaq could jump higher in 2025 2 artificial msn

Technology stocks were in fine form on the stock market in 2024, with the tech-laden Nasdaq Composite (^IXIC +0.37%) index clocking impressive gains of 28.6% last year following an even stronger jump of 43%... Historical trends indicate that the Nasdaq Composite could be on track to deliver more gains in 2025. In any year where the Nasdaq managed a 30%-plus gain overall, it averaged a 19% jump in the year that followed. Moreover, the Nasdaq averages a 17% return following a year in which it delivered returns of 20% or more. Of course, veteran investors are well aware that past returns cannot be taken as reliable indicators of future performance. However, the broader sentiment on Wall Street suggests that the stock market could head higher in 2025 on the back of continued investments in artificial intelligence (AI), a robust U.S.

economy, and additional interest rate cuts by the Federal Reserve. Given this upbeat sentiment, there is no harm in taking a closer look at the prospects of Advanced Micro Devices (AMD 0.98%) and Dell Technologies (DELL +2.84%), two AI stocks that have been hammered... AMD stock is down nearly 39% from its all-time high set in March 2024. That may seem surprising considering that AMD's growth profile has been improving in recent quarters on news of improving demand for its AI chips used in data centers as well as in personal computers... Last year was fantastic for the markets in general, but the index that really stood out was the Nasdaq. It climbed 28%, while the S&P 500 rose 23% and the Dow Jones Industrial Average increased 12%.

The Nasdaq, heavily weighted in technology companies, surged as investors piled into the industry's hottest new area: artificial intelligence (AI) stocks. Today's $200 billion AI market is forecast to top $1 trillion by the end of the decade, and investors have sought to get in early on this high-growth story. The technology has the potential to transform many industries, saving companies time and money, while boosting earnings as a result. And earnings growth often leads to positive stock performance. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now.

See the 10 stocks » As 2025 gets started, it's logical to ask this question: After two years of gains, will the Nasdaq keep up the momentum this year? History says it will. If we look at the past periods of gains since 1990, in five out of six cases, the Nasdaq has climbed for three consecutive years or more. Of course, the market can surprise us and deviate from a trend, but in general, history has shown itself to be a solid guide. Now, let's look at my top AI stocks to buy before the Nasdaq takes off.

Written by Will Ebiefung for The Motley Fool-> According to data from CNBC going back to 1980, the Nasdaq and other benchmark indexes have historically risen in the months following a presidential election. This trend has continued in 2024, with the tech-heavy index up by around 10% since Donald Trump's win on Nov. 5. A new administration can mean less political uncertainty, making many market participants more comfortable holding assets in general. There is no guarantee that the Nasdaq's momentum will continue in 2025.

But as Wall Street continues to pour money into AI tech, Advanced Micro Devices (NASDAQ: AMD) and Amazon (NASDAQ: AMZN) are two stocks could ride the wave into another year of stellar growth. Let's dig deeper. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. See the 10 stocks » With shares down 13% this year, AMD is a chipmaker that somehow missed out on much of the generative AI rally despite being a big player in the hardware side of the opportunity.

The chipmaker's diversified business model makes it a great alternative to Nvidia. And a reasonable valuation is icing on the cake for investors. Technology stocks were in fine form on the stock market in 2024, with the tech-laden Nasdaq Composite (NASDAQINDEX: ^IXIC) index clocking impressive gains of 28.6% last year following an even stronger jump of 43%... Historical trends indicate that the Nasdaq Composite could be on track to deliver more gains in 2025. In any year where the Nasdaq managed a 30%-plus gain overall, it averaged a 19% jump in the year that followed. Moreover, the Nasdaq averages a 17% return following a year in which it delivered returns of 20% or more.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. See the 10 stocks » Of course, veteran investors are well aware that past returns cannot be taken as reliable indicators of future performance. However, the broader sentiment on Wall Street suggests that the stock market could head higher in 2025 on the back of continued investments in artificial intelligence (AI), a robust U.S. economy, and additional interest rate cuts by the Federal Reserve.

Given this upbeat sentiment, there is no harm in taking a closer look at the prospects of Advanced Micro Devices (NASDAQ: AMD) and Dell Technologies (NYSE: DELL), two AI stocks that have been hammered... Historical trends suggest that 2025 should be another great year for the Nasdaq. Since ChatGPT was released on Nov. 30, 2022, the S&P 500 (^GSPC +0.08%) and Nasdaq Composite (^IXIC +0.37%) have boasted total returns of 48% and 69%, respectively. Euphoria around the prospects of artificial intelligence (AI) helped snap the capital markets out of a wicked funk that took place during much of 2022. And while some investors may be wary of just how long the bull market will last, history suggests 2025 should be another terrific year for technology stocks in particular.

Below, I'll make the case for why this year could feature another strong performance by the Nasdaq. Moreover, I'll outline why AI infrastructure stock Nebius Group (NBIS 0.54%) looks well positioned for some solid gains. Since the Nasdaq's inception in 1971, the index has generated negative annual returns a total of 14 times. During this period, the Nasdaq has only declined across consecutive years on two occasions: between 1973 and 1974 and from 2000 to 2002. Written by Bram Berkowitz for The Motley Fool-> The stock market is putting the finishing touches on what should be a fantastic year in 2024.

The broader benchmark S&P 500 is up close to 28% (as of Dec. 17) and also posted a 24% gain in 2023. Not too shabby. While uncertainty remains heading into 2025, the economy looks to be on solid footing. The labor market has held strong, and inflation is declining, although it still is not at the Federal Reserve's preferred 2% rate. Where to invest $1,000 right now?

Our analyst team just revealed what they believe are the 10 best stocks to buy right now. See the 10 stocks » Many market strategists predict another solid year in 2025. While they may be right, I also think the market is due for some turbulence. I predict the S&P 500 will experience a 10% pullback at some point next year. Here's why.

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