History Says The Nasdaq Could Soar 2 Ai Stocks To Buy Hand Over Fist

Bonisiwe Shabane
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history says the nasdaq could soar 2 ai stocks to buy hand over fist

Written by John Ballard for The Motley Fool-> The Nasdaq Composite is up 30% over the last 12 months, kicking off a strong bull market. This market enthusiasm has significance for new investors, because the average duration of a bull market historically is 4.9 years, according to investment firm Stifel -- about three times longer than bear markets. Much of the growth in the Nasdaq Composite in this bull market is related to enthusiasm for all things connected to artificial intelligence (AI). The potential of this evolving technology has investors and market traders excited. Investors who focus on buying reasonably priced AI growth stocks now could have several years of handsome gains to look forward to.

Here are two quality AI growth stocks to buy today. Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) is using AI technology it's developing to generate significant improvements across its business, including improving search results for users on multiple platforms it operates and boosting ad performance for... Alphabet began investing in generative AI technology in 2016, and its latest iteration is Gemini, a series of AI models it plans to use to lay the groundwork for the company's future. Gemini can generatively process and produce text, images, audio, and video based on user prompts, and the enthusiasm among users is already driving substantial growth for the company. The Nasdaq Composite recently entered a new bull market, and the index has returned 31% annually during bull markets since 1990. Meta Platforms is using artificial intelligence to improve engagement and ad conversions across its social media properties, and the stock is currently 24% below its high.

Alphabet's Google is a recognized leader in artificial intelligence infrastructure and large language models, which should drive market share gains in cloud computing. The Nasdaq Composite (NASDAQINDEX: ^IXIC) recently entered a new bull market after crashing when President Trump began imposing tariffs earlier this year. Since 1990, the growth-focused index has been through six other bull markets, and it returned an average of 31% annually during those events. That hints at substantial gains in 2026 and investors can lean into that possibility by buying shares of Meta Platforms (NASDAQ: META) and Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). Wall Street is generally bullish on both stocks: The adoption of AI has been going strong for nearly three years now.

There could be more to come. The Nasdaq Composite has risen steadily for nearly three years, and many believe the catalyst that sparked the current bull market was the advent of artificial intelligence (AI). Add to that the ongoing campaign of interest rate cuts and higher corporate earnings, and conditions are ripe for the market's momentum to continue. Furthermore, the tech-centric index's three-year rally suggests there will be more to come in the new year. Going back 50 years, there have been five bull markets that have lasted longer than three years, and in each case, the rally has continued, according to Ryan Detrick, chief market strategist at financial... The data shows that bull markets that persisted longer than three years continued to gain ground, lasting eight years on average.

Even the shortest lasted for five years, which suggests there could be more to come. Additionally, estimates regarding the impact of AI continue to ratchet higher. The adoption of generative AI could add as much as $15.7 trillion to the global economy by 2030, according to Big Four accounting firm PricewaterhouseCoopers (PwC), creating a windfall for those at the cutting... Here are my top 10 AI stocks to buy before the Nasdaq climbs to new heights in 2026. Written by Trevor Jennewine for The Motley Fool-> The technology-heavy Nasdaq Composite returned 12% annually over the last 20 years, and similar returns are likely in the future as the artificial intelligence (AI) boom unfolds.

Arm chips have long been the most popular option in smartphones, but the company has quickly gained market share in data center servers. MongoDB develops the most popular document-oriented database on the market, and its technology is ideal for supporting AI applications. The Nasdaq Composite (NASDAQINDEX: ^IXIC) advanced 857% during the last two decades, equivalent to an annual return of 12%. That period covers such a broad range of economic and stock market conditions that investors can be reasonably confident in similar returns in the future. The stock market has been running high. Too high, some analysts say.

A number of Wall Street observers warn the stock market may have entered “bubble” territory. It’s an analogy to the overhyped markets of 2008 and 1999, which crashed when the bubbles burst. Lately, there's talk of an AI bubble, a runup in the prices of tech stocks fueled by enthusiasm over artificial intelligence. Those fears partly explain why stocks have faltered in the second half of November, despite a string of strong earnings reports. When investors fear stocks might sink, their thoughts might turn to pulling money from the market and parking it in cash: money market funds, Treasury bills, even a plain old savings account. Seesawing stock prices fuel their ennui.

“A lot of my clients have been sort of panic-calling this week,” said Monica Dwyer, a certified financial planner in West Chester, Ohio, speaking to USA TODAY in October. These profitable tech giants offer enough growth to double your investment in five years. Artificial intelligence (AI) is expected to bring significant efficiency gains to businesses over the long term but will require substantial investment. Morgan Stanley expects spending on AI infrastructure, including chips and data centers, to exceed $3 trillion over the next three years. Investors don't need to take unnecessary risks to build wealth from AI. You can invest in highly profitable, industry-leading companies and outperform the broader market.

Here are two top AI stocks to buy today that could double in value by 2030. The recent pullback in Broadcom's (AVGO 0.68%) stock presents a great buying opportunity. This top semiconductor has a history of growing free cash flow at high double-digit rates. The prospects for more growth, driven by booming demand for advanced chips and networking components in data centers, could lead to higher free cash flow and attractive returns for investors over the next five... CEO Hock Tan noted at a recent Goldman Sachs technology conference that they continue to see "robust demand for AI compute." Broadcom is one of a small group of semiconductor companies that are supplying... Broadcom reported a 63% year-over-year increase in AI-related product revenue last quarter.

Management expects another year of strong growth in fiscal 2026. History says the S&P 500 could advance 26% in the next year, and most Wall Street analysts see The Trade Desk and Okta as undervalued stocks at current prices. The Trade Desk operates the leading independent adtech platform for media buyers, and the adtech market is projected to expand at 14% annually through 2030. Okta is a leader in identity and access management, a market where spending is forecast to grow at 12% annually through 2030 as more businesses deploy AI agents. The S&P 500 (SNPINDEX: ^GSPC) added 20.5% during the two-month period that ended on June 9, 2025. The index has only achieved a two-month return above 20% on five other occasions since 1950, and that momentum led to an average gain of 31% during the next 12 months.

Since the S&P 500 closed at 6,006 on June 9, that suggests the index will climb 31% to 7,868 by next June -- if its performance aligns with the historical average. That implies 26% upside from its current level of 6,230. Of course, past performance is never a guarantee of future returns, but investors can lean into historical trends, as long as they maintain a long-term mindset.

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