History says the Nasdaq will top in 2025.
Last year was fantastic for the markets in general, but it was the index that really stood out Nasdaq. It rose to 28%, but in S&P 500 It grew by 23 percent. Dow Jones Industrial Average It increased by 12 percent. The Nasdaq, heavily weighted in technology companies, rose as investors piled into the industry’s hottest new area: artificial intelligence (AI) stocks.
Today’s $200 billion AI market is predicted to top $1 trillion by the end of the decade, and investors want to get in early on this massive growth story. The technology has the potential to change many industries, saving the company time and money and thereby increasing revenue. And earnings growth often leads to positive stock performance.
As 2025 begins, it’s reasonable to ask this question: After two years of gains, will the Nasdaq continue its gains this year? History says it will. If we look at past periods of gains since 1990, in five out of six cases, the Nasdaq has risen for three consecutive years or more.
Of course, the market can surprise us and deviate from the trend, but in general, history has shown itself to be a self-sustaining guide. Now, let’s take a look at my top AI stocks to buy before the Nasdaq takes off.
You can attach. Meta forums (NASDAQ: META ) Mainly with social media. The company also owns Facebook, Messenger, Instagram and WhatsApp, each of which has more than 3.2 billion users.
day.
But Meta is growing its own and becoming a giant in AI. A large language model (LLM) as a Meta AI assistant to support tools we can all use. The company made AI its biggest investment area last year and said it plans to continue increasing spending in this area in the near future. It aims to create an AI that can help all its users in their daily activities, work-related projects and more.
This focus and related investments could eventually position Meta as a leader in this hot growth area and boost its revenue. For example, the company generates most of its revenue from advertising — and AI assistants could prompt us to spend more time on Meta apps, encouraging advertisers to spend more to reach us.
With all this in mind, it shares a meta – it trades only 24 times Estimation of future income Even after last year’s 65% gain — it looks like an AI buying deal to close before the Nasdaq goes up.
Alphabet (NASDAQ:GOOG) (NASDAQ: GOOGL )Like Meta, you may not be the company you’re directly dealing with AI. Most of us are probably more familiar with Google Search, a tool that we use every day.
But AI is winning in two ways. First, his LLM is helping Gemini improve search and create a better experience for people who advertise across Google. Second, Alphabet offers AI tools and services, including Gemini, on Google Cloud, its cloud computing business.
