The Nasdaq Composite index is on a winning streak in 2024, with technology stocks leading the charge to record highs. Investors are flocking to growth and innovation, particularly in artificial intelligence (AI) stocks, chip designers, and cloud computing players. This surge has pushed the index into bull territory, setting the stage for potential further gains.
Looking back at historical data, the Nasdaq has a track record of strong performance during periods of stock market gains. On average, the index has climbed 64% in the first two years of positive performance following six previous periods dating back to 1990. With a 43% gain last year and an 8% increase so far this year, the Nasdaq could be poised for even greater heights in 2024.
Two standout AI growth stocks to watch in this bullish market are Amazon (NASDAQ: AMZN) and Intel (NASDAQ: INTC). Amazon’s use of AI technology in its e-commerce operations and cloud computing services through Amazon Web Services (AWS) positions it for continued growth. Meanwhile, Intel’s recent innovations in AI products and its ambitious plans to become a major player in the foundry market could drive significant gains for the company.
With Amazon trading at 43 times forward earnings estimates and Intel at 29 times forward earnings estimates, both stocks offer potential for growth at reasonable valuations. As the Nasdaq continues its upward trajectory, investors may want to consider these AI-focused companies for their portfolios to capitalize on the market’s momentum.