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Why Big Tech Stocks Are Powering Market Gains Again
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In May, the Nasdaq jumped 9.6%, marking its biggest monthly gain since November 2023. Information Technology and Communication Services were the best-performing sectors.
Big Tech stocks—particularly the "Magnificent Seven"—posted strong Q1 earnings, demonstrating that their core businesses are performing well and they are navigating current economic conditions successfully.
Chipmakers like NVIDIA ((NVDA - Free Report) ) and AMD ((AMD - Free Report) ) received an extra boost from deals announced in the Middle East, where several AI infrastructure projects were unveiled during President Trump’s visit to the region.
NVIDIA's earnings, closely watched by investors as a barometer of the AI revolution, came in stronger than expected, reinforcing confidence that the AI trade remains robust. Microsoft ((MSFT - Free Report) ), Meta ((META - Free Report) ), Alphabet ((GOOG - Free Report) ), and Amazon ((AMZN - Free Report) ), which together account for over 40% of NVIDIA’s revenue, continue to invest heavily in AI infrastructure.
Microsoft impressed investors with strong growth in its Azure cloud computing division, where AI services provided a notable boost. Meta also delivered solid results and eased investor concerns about the potential impact of tariffs on its digital advertising business. The company raised its capital expenditure guidance.
Apple and Amazon, on the other hand, were among the hardest hit by tariffs. Apple has also come under pressure from investors for falling behind in the AI race.
Meanwhile, Tesla ((TSLA - Free Report) ) investors welcomed news that Elon Musk would be devoting more time to his companies.
To learn more about the Invesco NASDAQ 100 ETF ((QQQM - Free Report) ), Vanguard Mega Cap Growth ETF ((MGK - Free Report) ), iShares Nasdaq Top 30 Stocks ETF ((QTOP - Free Report) ), and Roundhill Magnificent Seven ETF ((MAGS - Free Report) ), please watch the short video above.
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Why Big Tech Stocks Are Powering Market Gains Again
In May, the Nasdaq jumped 9.6%, marking its biggest monthly gain since November 2023. Information Technology and Communication Services were the best-performing sectors.
Big Tech stocks—particularly the "Magnificent Seven"—posted strong Q1 earnings, demonstrating that their core businesses are performing well and they are navigating current economic conditions successfully.
Chipmakers like NVIDIA ((NVDA - Free Report) ) and AMD ((AMD - Free Report) ) received an extra boost from deals announced in the Middle East, where several AI infrastructure projects were unveiled during President Trump’s visit to the region.
NVIDIA's earnings, closely watched by investors as a barometer of the AI revolution, came in stronger than expected, reinforcing confidence that the AI trade remains robust. Microsoft ((MSFT - Free Report) ), Meta ((META - Free Report) ), Alphabet ((GOOG - Free Report) ), and Amazon ((AMZN - Free Report) ), which together account for over 40% of NVIDIA’s revenue, continue to invest heavily in AI infrastructure.
Microsoft impressed investors with strong growth in its Azure cloud computing division, where AI services provided a notable boost. Meta also delivered solid results and eased investor concerns about the potential impact of tariffs on its digital advertising business. The company raised its capital expenditure guidance.
Apple and Amazon, on the other hand, were among the hardest hit by tariffs. Apple has also come under pressure from investors for falling behind in the AI race.
Meanwhile, Tesla ((TSLA - Free Report) ) investors welcomed news that Elon Musk would be devoting more time to his companies.
To learn more about the Invesco NASDAQ 100 ETF ((QQQM - Free Report) ), Vanguard Mega Cap Growth ETF ((MGK - Free Report) ), iShares Nasdaq Top 30 Stocks ETF ((QTOP - Free Report) ), and Roundhill Magnificent Seven ETF ((MAGS - Free Report) ), please watch the short video above.