Technology stocks continue to be the driving force behind the stock market surge. The Nasdaq Composite recently soared above 17,000, hitting an all-time high and showcasing a tenfold surge over the past 15 years, with a remarkable 30% increase in the last 12 months, overshadowing other asset classes.
Nvidia (NVDA)
When it comes to tech supremacy in the upcoming decade, Nvidia (NASDAQ:NVDA) stands out as the paramount choice. With dominance in microchips and semiconductors powering AI applications, the company’s quarterly earnings hold the prowess to sway the entire market. Nvidia currently commands a staggering three-quarters (75%) share of the global market in this realm, propelling its financial performance to stratospheric heights.
In the first quarter of this year, Nvidia showcased mesmerizing sales and profit growth figures. Sales surged by 268% from the previous year, while profits skyrocketed by 646% year-over-year. The company’s forward trajectory is evident as it announced a 10-for-1 stock split and a 150% hike in its quarterly dividend payout. Predicting further growth, Nvidia foresees second-quarter sales of $28 billion, eclipsing the $26 billion forecast by Wall Street.
Evidencing its extraordinary growth and dominance, NVDA stock has nearly tripled in the last 12 months and surged over 3,300% in the past five years. Analysts are optimistic about its future growth, reflecting a consensus “strong buy” rating.
Alphabet (GOOG, GOOGL)
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) appears primed to lead the AI-driven future of the upcoming decade. The company’s recent developer conference showcased its profound capabilities with AI. The I/O developer event this year exhibited Alphabet’s integration of AI into online search via Google and unveiled advancements like the Android operating system and its “Gemini” AI technology.
While Nvidia powers the mechanics of AI applications, Alphabet continues to maintain an edge by leveraging the expertise of its DeepMind unit, housing some of the world’s finest AI researchers. GOOGL stock has surged by 42% over the past 12 months, underlining its promising trajectory.
Netflix (NFLX)
As cable television wanes and streaming emerges as a cornerstone, Netflix (NASDAQ:NFLX) has secured its position with a formidable competitive advantage. While many struggle to make their streaming platforms profitable, Netflix thrives with robust earnings and subscriber numbers, driven by diverse content appealing to a global audience.
In the first quarter of this year, Netflix surpassed expectations with an EPS of $5.28, revenue of $9.37 billion, and 269.6 million subscribers, reflecting an impressive 16% year-on-year subscriber growth. Netflix’s innovative strategies, including cracking down on password sharing, introducing advertising, and venturing into live sports and events, have propelled NFLX stock by 67% in the last 12 months.
Joel Baglole is a veteran business journalist with extensive experience at prestigious publications like The Wall Street Journal and The Washington Post.