History Says The Nasdaq Could Soar In 2025 2 Ai Stocks To Buy Before

Bonisiwe Shabane

-Dec 3, 2025, 12:07 AM

history says the nasdaq could soar in 2025 2 ai stocks to buy before

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. The current Nasdaq bull market is young by historical standards, and Wall Street analysts see buying opportunities in Nvidia and Zscaler. The Nasdaq Composite (^IXIC +0.77%) entered a new bull market on April 8. The technology-heavy index has since advanced by 53%, but history suggests more upside is likely over the next year. Since 1990, the Nasdaq has returned an average of 281% during bull markets, compounding at 31% annually.

How can investors capitalize? Most Wall Street analysts view Nvidia (NVDA +2.57%) and Zscaler (ZS +0.19%) as undervalued, as detailed below. Here's what investors should know about these artificial intelligence stocks. Semiconductor company Nvidia reported excellent financial results in the third quarter. Revenue soared 62% to $57 billion, driven by solid growth across all four segments: data center, gaming, professional visualization, and automotive/robotics. Meanwhile, non-GAAP net income climbed 60% to $1.30 per diluted share.

The Nasdaq Composite entered a new bull market earlier this year; since 1990, the index has returned an average 281% during bull markets. Nvidia GPUs and networking are the gold standard in artificial intelligence infrastructure, and many analysts expect the company to maintain its dominance for years to come. Zscaler is benefiting from artificial intelligence both because the technology is empowering cybercriminals and because it has created a new category of IT assets that require protection. The Nasdaq Composite (NASDAQINDEX: ^IXIC) entered a new bull market on April 8. The technology-heavy index has since advanced by 53%, but history suggests more upside is likely over the next year. Since 1990, the Nasdaq has returned an average of 281% during bull markets, compounding at 31% annually.

How can investors capitalize? Most Wall Street analysts view Nvidia (NASDAQ: NVDA) and Zscaler (NASDAQ: ZS) as undervalued, as detailed below. Daily stocks & crypto headlines, free to your inbox By continuing, I agree to the Market Data Terms of Service and Privacy Statement Written by Adria Cimino for The Motley Fool-> 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. Start Your Mornings Smarter!

Wake up with Breakfast news in your inbox every market day. Sign Up For Free » 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. The Nasdaq Composite (^IXIC +0.47%) has advanced 32% year to date due in part to enthusiasm about artificial intelligence.

That momentum bodes well for 2025 because strength in the index has historically led to more strength. Since the Nasdaq was created in 1971, it has returned at least 20% in 20 years, and at least 30% in 12 years. And the index has consistently followed those years with more strength, as detailed below: In short, if the Nasdaq returns at least 30% this year, history says the index could surge another 19% next year. Of course, past results are never a guarantee of future performance. But there is no in harm leaning into trends, so long as the goal is long-term capital appreciation.

One Nasdaq stock where Wall Street is particularly bullish is Amazon (AMZN +0.71%), one of only a handful of trillion-dollar companies. Of the 70 analysts following Amazon, 94% rate the stock a buy and the rest rate the stock a hold. Not one analyst recommends selling right now. Amazon runs the largest e-commerce marketplace in North America in terms of sales, and the company is projected to gain share in 2025. Beyond that, Amazon has room to grow given that online sales account for less than 17% of total retail sales in the U.S.. But the company has bigger opportunities in the high-margin industries of digital advertising and cloud computing.

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. AMD's third-quarter revenue grew by a modest 17% year over year to $6.8 billion. However, this consolidated number might hide the spectacular performance of its data center segment, which soared 122% to $3.5 billion, driven by sales of advanced graphics processing units (GPUs) for running and training AI... Management plans to drive continued data center growth by releasing new, more advanced chips, such as the Instinct MI325X series, designed to compete with Nvidia's Blackwell.

History Says The Nasdaq Could Soar In 2025 2 Ai Stocks To Buy Before

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