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4 Stocks to Bet on as Nasdaq's Northbound Journey Continues
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Key Takeaways
Nasdaq hit 21,450.02, its second straight all-time close, driven by tech stock gains.
AI growth and major U.S. tech investments are boosting the semiconductor sector.
Microsoft, Broadcom, Netflix and Shopify show strong earnings growth potential.
The Nasdaq’s northbound journey continues, with tech stocks fueling the broader market rally over the past few weeks. The Dow, the S&P 500 and the Nasdaq have hit multiple all-time closing highs over the past month. On Friday, the Nasdaq hit a fresh all-time closing high for the second-straight day.
The tech rally is being powered by several positive developments, including massive investments by tech behemoths in the domestic arena and the ongoing enthusiasm surrounding artificial intelligence (AI), especially generative AI.
The Nasdaq jumped 1% on Friday to close at a record all-time closing high of 21,450.02 points. Earlier in the day, the tech-heavy index hit a fresh all-time intraday high. The ongoing Nasdaq rally is being powered by robust earnings reports, big investments in chips in the United States and enthusiasm surrounding AI.
Friday’s rally was driven by Apple Inc. (AAPL - Free Report) after the iPhone maker announced that it will pump in $600 billion over four years in the United States to boost domestic manufacturing. The company’s shares surged 13% last week, recording the best week since July 2020.
The Nasdaq has gained 4% in the past month and 12.6% year to date.
Apple’s announcement came a day before President Donald Trump said that he would impose a 100% tariff on imported semiconductors, but exempt companies that manufacture in the United States. Apple’s announcement is expected to prompt more tech companies to manufacture in the United States to avoid Trump’s tariffs on semiconductors.
AI Powering Tech Rally
AI experts remain divided on the long-term prospects of generative AI, but excitement around its possibilities has surged in recent years. Many view the technology as still being in its early stages, with plenty of untapped potential ahead. Among the leaders in this field is NVIDIA Corporation (NVDA - Free Report) , which has played a key role in driving both innovation and investor interest. So far in 2025, NVIDIA’s stock has climbed 38.6%.
The company’s success has prompted other major tech firms to ramp up their investments in generative AI. At the same time, the rising adoption of smart devices is boosting demand for advanced computing and machine learning capabilities.
These devices rely on functions such as facial recognition, video analysis, and image processing — all of which require fast, energy-efficient processors with strong graphics performance and ample memory. This demand has helped spark a robust recovery in the semiconductor sector over the past two years.
Meanwhile, even though interest rate cuts have been delayed, investors remain optimistic that the Federal Reserve will implement at least two 25-basis-point reductions this year, with the first coming in September. Such moves would likely boost growth-oriented assets, especially technology stocks, which generally benefit from lower borrowing costs.
4 Nasdaq Stocks With Growth Potential
Microsoft Corporation
Microsoft Corporation is one of the largest broad-based technology providers in the world. MSFT dominates the PC software market, with more than 73% of the market share for desktop operating systems. Microsoft Corporation’s Microsoft 365 application suite is one of the most popular productivity software globally. MSFT is also one of the prominent public cloud providers that can deliver a wide variety of infrastructure-as-a-service and platform-as-a-service solutions at scale.
Microsoft Corporation has an expected earnings growth rate of 12.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.3% over the last 60 days. MSFT presently carries a Zacks Rank #2.
Broadcom Inc.
Broadcom Inc. is a premier designer, developer and global supplier of a broad range of semiconductor devices, with a focus on complex digital and mixed signal complementary metal oxide semiconductor-based devices and analog III-V-based products. AVGO’s semiconductor solutions are used in end products such as enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays.
Broadcom’s expected earnings growth rate for the current year is 36.1%. The Zacks Consensus Estimate for the current-year earnings has improved 0.2% over the past 60 days. AVGO currently has a Zacks Rank #2.
Netflix, Inc.
Netflix, Inc. is considered a pioneer in the streaming space. NFLX has been spending aggressively on building its portfolio of original shows. This is helping Netflix sustain its leading position despite the launch of new services like Disney+ and Apple TV+, as well as existing services like Amazon Prime Video.
Netflix’s expected earnings growth rate for the current year is 31.4%. The Zacks Consensus Estimate for the current-year earnings has improved 2.9% over the past 60 days. NFLX currently carries a Zacks Rank #1.
Shopify Inc.
Shopify Inc. is a leading global commerce platform that helps in starting, scaling, marketing, and running a business of any size. SHOP’s platform and services are engineered for simplicity and reliability, while delivering a better shopping experience for customers everywhere.
Shopify’s expected earnings growth rate for the current year is 8.5%. The Zacks Consensus Estimate for the current-year earnings has improved 0.7% over the past 60 days. SHOP currently sports a Zacks Rank #1.
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4 Stocks to Bet on as Nasdaq's Northbound Journey Continues
Key Takeaways
The Nasdaq’s northbound journey continues, with tech stocks fueling the broader market rally over the past few weeks. The Dow, the S&P 500 and the Nasdaq have hit multiple all-time closing highs over the past month. On Friday, the Nasdaq hit a fresh all-time closing high for the second-straight day.
The tech rally is being powered by several positive developments, including massive investments by tech behemoths in the domestic arena and the ongoing enthusiasm surrounding artificial intelligence (AI), especially generative AI.
Given the ongoing tech rally, it would be ideal to invest in Nasdaq stocks such as Microsoft Corporation (MSFT - Free Report) , Broadcom Inc. (AVGO - Free Report) , Netflix, Inc. (NFLX - Free Report) and Shopify Inc. (SHOP - Free Report) , whichhave strong potential for the near term. These stocks have a Zacks Rank #1 (Strong Buy) or 2 (Buy) and assure good returns. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nasdaq Hits New All-Time Closing High
The Nasdaq jumped 1% on Friday to close at a record all-time closing high of 21,450.02 points. Earlier in the day, the tech-heavy index hit a fresh all-time intraday high. The ongoing Nasdaq rally is being powered by robust earnings reports, big investments in chips in the United States and enthusiasm surrounding AI.
Friday’s rally was driven by Apple Inc. (AAPL - Free Report) after the iPhone maker announced that it will pump in $600 billion over four years in the United States to boost domestic manufacturing. The company’s shares surged 13% last week, recording the best week since July 2020.
The Nasdaq has gained 4% in the past month and 12.6% year to date.
Apple’s announcement came a day before President Donald Trump said that he would impose a 100% tariff on imported semiconductors, but exempt companies that manufacture in the United States. Apple’s announcement is expected to prompt more tech companies to manufacture in the United States to avoid Trump’s tariffs on semiconductors.
AI Powering Tech Rally
AI experts remain divided on the long-term prospects of generative AI, but excitement around its possibilities has surged in recent years. Many view the technology as still being in its early stages, with plenty of untapped potential ahead. Among the leaders in this field is NVIDIA Corporation (NVDA - Free Report) , which has played a key role in driving both innovation and investor interest. So far in 2025, NVIDIA’s stock has climbed 38.6%.
The company’s success has prompted other major tech firms to ramp up their investments in generative AI. At the same time, the rising adoption of smart devices is boosting demand for advanced computing and machine learning capabilities.
These devices rely on functions such as facial recognition, video analysis, and image processing — all of which require fast, energy-efficient processors with strong graphics performance and ample memory. This demand has helped spark a robust recovery in the semiconductor sector over the past two years.
Meanwhile, even though interest rate cuts have been delayed, investors remain optimistic that the Federal Reserve will implement at least two 25-basis-point reductions this year, with the first coming in September. Such moves would likely boost growth-oriented assets, especially technology stocks, which generally benefit from lower borrowing costs.
4 Nasdaq Stocks With Growth Potential
Microsoft Corporation
Microsoft Corporation is one of the largest broad-based technology providers in the world. MSFT dominates the PC software market, with more than 73% of the market share for desktop operating systems. Microsoft Corporation’s Microsoft 365 application suite is one of the most popular productivity software globally. MSFT is also one of the prominent public cloud providers that can deliver a wide variety of infrastructure-as-a-service and platform-as-a-service solutions at scale.
Microsoft Corporation has an expected earnings growth rate of 12.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 2.3% over the last 60 days. MSFT presently carries a Zacks Rank #2.
Broadcom Inc.
Broadcom Inc. is a premier designer, developer and global supplier of a broad range of semiconductor devices, with a focus on complex digital and mixed signal complementary metal oxide semiconductor-based devices and analog III-V-based products. AVGO’s semiconductor solutions are used in end products such as enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays.
Broadcom’s expected earnings growth rate for the current year is 36.1%. The Zacks Consensus Estimate for the current-year earnings has improved 0.2% over the past 60 days. AVGO currently has a Zacks Rank #2.
Netflix, Inc.
Netflix, Inc. is considered a pioneer in the streaming space. NFLX has been spending aggressively on building its portfolio of original shows. This is helping Netflix sustain its leading position despite the launch of new services like Disney+ and Apple TV+, as well as existing services like Amazon Prime Video.
Netflix’s expected earnings growth rate for the current year is 31.4%. The Zacks Consensus Estimate for the current-year earnings has improved 2.9% over the past 60 days. NFLX currently carries a Zacks Rank #1.
Shopify Inc.
Shopify Inc. is a leading global commerce platform that helps in starting, scaling, marketing, and running a business of any size. SHOP’s platform and services are engineered for simplicity and reliability, while delivering a better shopping experience for customers everywhere.
Shopify’s expected earnings growth rate for the current year is 8.5%. The Zacks Consensus Estimate for the current-year earnings has improved 0.7% over the past 60 days. SHOP currently sports a Zacks Rank #1.