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AI Enthusiasm Powers Nasdaq to All-Time High: 3 Stocks to Grab
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Key Takeaways
Nasdaq hit a record high, driven by AI demand and strong Magnificent Seven earnings.
NVDA and AVGO show strong earnings growth forecasts tied to AI and semiconductor demand.
MU benefits from the rising need for memory in AI, data centers and high-performance computing.
The Nasdaq closed at a record high on Friday, once again powered by a tech rally. Tech stocks have been primarily responsible for the broader market rally over the past three years, and the momentum has continued into 2026.
High demand for artificial intelligence (AI) has seen big tech companies spending aggressively on infrastructure. Also, solid first-quarter earnings from the “Magnificent Seven” tech companies have helped boost Nasdaq’s rally.
Given the index’s bull run, it would be ideal to invest in Nasdaq stocks, such as NVIDIA Corporation (NVDA - Free Report) , Broadcom Inc. (AVGO - Free Report) and Micron Technology, Inc. (MU - Free Report) , which have strong potential in 2026. 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 Record High
The Nasdaq jumped 0.9% on Friday to close at a record high of 25,114.44 points. The rally is being driven by big tech stocks, particularly after stellar first-quarter earnings from the Magnificent Seven, comprising the likes of Amazon.com, Inc. (AMZN - Free Report) , Apple, Inc. (AAPL - Free Report) , and Microsoft Corporation (MSFT - Free Report) .
Also, the ongoing enthusiasm surrounding AI, especially generative AI, has been boosting cloud and data center revenues for several tech giants. Microsoft, Meta Platforms, Inc. (META - Free Report) and Alphabet, Inc. (GOOGL - Free Report) have all pumped in hundreds of millions of dollars in AI development.
META’s first-quarter revenues jumped 33% year over year, powered by AI momentum, while Alphabet’s revenues surged 22% from the year-ago levels. Microsoft’s revenues also grew 18% year over year in the first quarter.
Nasdaq’s journey has been quite remarkable in 2026. The index started on a high but shed 2.3% in February as volatility returned to markets. However, the tech-heavy index made a solid rebound powered by the AI rally.
NVIDIA has played a key role in boosting the Nasdaq as it continues to lead the AI revolution. Also, Apple’s steady revenue growth in cloud and AI services has helped the index’s rally.
The Nasdaq has gained 8.08% year to date and is projected to grow at a solid pace this year.
3 Nasdaq Stocks With Growth Potential
NVIDIA Corporation
NVIDIA Corporation is the worldwide leader in visual computing technologies and the inventor of the graphics processing unit, or GPU. Over the years, NVDA’s focus has evolved from PC graphics to AI-based solutions that now support high-performance computing, gaming and virtual reality platforms.
NVIDIA has an expected earnings growth rate of 69.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the last 60 days. NVDA currently has 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 67.9%. The Zacks Consensus Estimate for the current-year earnings has improved 13.9% over the past 60 days. AVGO currently has a Zacks Rank #1.
Micron Technology, Inc.
Micron Technology, Inc., through global brands, namely Micron, Crucial and Ballistix, manufactures and markets high-performance memory and storage technologies, including Dynamic Random Access Memory, NAND flash memory, NOR Flash, 3D XPoint memory and other technologies. MU’s solutions are used in leading-edge computing, consumer, networking and mobile products. Micron continues to benefit from the surging demand for high-performance computing components for AI, data centers and mobile devices.
Micron Technology has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 70.6% over the last 60 days. Currently, MU sports a Zacks Rank #1.
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AI Enthusiasm Powers Nasdaq to All-Time High: 3 Stocks to Grab
Key Takeaways
The Nasdaq closed at a record high on Friday, once again powered by a tech rally. Tech stocks have been primarily responsible for the broader market rally over the past three years, and the momentum has continued into 2026.
High demand for artificial intelligence (AI) has seen big tech companies spending aggressively on infrastructure. Also, solid first-quarter earnings from the “Magnificent Seven” tech companies have helped boost Nasdaq’s rally.
Given the index’s bull run, it would be ideal to invest in Nasdaq stocks, such as NVIDIA Corporation (NVDA - Free Report) , Broadcom Inc. (AVGO - Free Report) and Micron Technology, Inc. (MU - Free Report) , which have strong potential in 2026. 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 Record High
The Nasdaq jumped 0.9% on Friday to close at a record high of 25,114.44 points. The rally is being driven by big tech stocks, particularly after stellar first-quarter earnings from the Magnificent Seven, comprising the likes of Amazon.com, Inc. (AMZN - Free Report) , Apple, Inc. (AAPL - Free Report) , and Microsoft Corporation (MSFT - Free Report) .
Also, the ongoing enthusiasm surrounding AI, especially generative AI, has been boosting cloud and data center revenues for several tech giants. Microsoft, Meta Platforms, Inc. (META - Free Report) and Alphabet, Inc. (GOOGL - Free Report) have all pumped in hundreds of millions of dollars in AI development.
META’s first-quarter revenues jumped 33% year over year, powered by AI momentum, while Alphabet’s revenues surged 22% from the year-ago levels. Microsoft’s revenues also grew 18% year over year in the first quarter.
Nasdaq’s journey has been quite remarkable in 2026. The index started on a high but shed 2.3% in February as volatility returned to markets. However, the tech-heavy index made a solid rebound powered by the AI rally.
NVIDIA has played a key role in boosting the Nasdaq as it continues to lead the AI revolution. Also, Apple’s steady revenue growth in cloud and AI services has helped the index’s rally.
The Nasdaq has gained 8.08% year to date and is projected to grow at a solid pace this year.
3 Nasdaq Stocks With Growth Potential
NVIDIA Corporation
NVIDIA Corporation is the worldwide leader in visual computing technologies and the inventor of the graphics processing unit, or GPU. Over the years, NVDA’s focus has evolved from PC graphics to AI-based solutions that now support high-performance computing, gaming and virtual reality platforms.
NVIDIA has an expected earnings growth rate of 69.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the last 60 days. NVDA currently has 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 67.9%. The Zacks Consensus Estimate for the current-year earnings has improved 13.9% over the past 60 days. AVGO currently has a Zacks Rank #1.
Micron Technology, Inc.
Micron Technology, Inc., through global brands, namely Micron, Crucial and Ballistix, manufactures and markets high-performance memory and storage technologies, including Dynamic Random Access Memory, NAND flash memory, NOR Flash, 3D XPoint memory and other technologies. MU’s solutions are used in leading-edge computing, consumer, networking and mobile products. Micron continues to benefit from the surging demand for high-performance computing components for AI, data centers and mobile devices.
Micron Technology has an expected earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 70.6% over the last 60 days. Currently, MU sports a Zacks Rank #1.