It’s been full steam ahead for technology stocks recently.
The tech-heavy NASDAQ has dramatically outperformed the other major indices in May so far, rising 3.9%. In comparison, the S&P 500 has dropped 0.4%, while the Dow has dropped 3.9%.
And mega-cap technology stocks are leading the NASDAQ higher.
It’s worth noting that three of these stocks – namely, Alphabet Inc. (Google), Microsoft Corp. (MSFT) and NVIDIA Corp. (NVDA) – are prospering from the artificial intelligence (AI) and ChatGPT craze. (Stay tuned! I’ll have more on more on NVIDIA and AI in tomorrow’s Market 360.)
In today’s Market 360, we’ll take a look at what’s driving tech stocks higher… and the “spark” that could flood the market with cash and send stocks even higher to close the year. Plus, I’ll share how you can access my next tech Buy List recommendation tomorrow…
Bigger Than Ever Before
Both Apple’s and Microsoft’s individual capitalizations are bigger than all the stocks in the small-cap Russell 2000 index.
One of the biggest drivers of tech stocks right now is AI.
Microsoft’s investment in ChatGPT has raised excitement about upgrades to all of its software, especially its search engine Bing. The rumblings that Samsung plans to replace Google with Bing as its preferred search engine has also fueled the speculation that ChatGPT will improve Bing’s searchability and help Microsoft become an AI leader.
Right now, every company in America is thinking about how to take existing products, services and business models and add an incredible new “super intelligence” component to them.
Since AI and technology stocks currently lead the overall stock market, the “spark” that triggers the cash pouring in from the sidelines and sending stocks higher could be any positive news emerging from the technology sector – such as Apple Inc.’s (AAPL) new iPhone announcement in September.
As investors, we want to make sure we’re prepared to ride stocks higher.
Prepare Now for the Market’s Next Leg Higher
The fact is, that spark could also come from the Federal Reserve commenting that inflation is cooling. Since 2024 is a presidential election year, the Fed does not want to be part of the economic debate, so key interest rate cuts will be forthcoming later this year and in early 2024.
It is important to realize that there is going to be wave-after-wave of positive news on inflation, interest rates and economic growth that will be coaxing investors back into the stock market. The leadership of the stock market will undoubtedly change in the upcoming months, although some of the seven giant technology stocks, like NVIDIA, are expected to continue to prosper from the AI boom.
(Remember, I’ll have more on NVIDIA and AI in tomorrow’s Market 360.)
Whether we’re talking about tech, financial or retail stocks, you always want to make sure you’re invested in fundamentally superior companies that consistently grow their earnings – like the companies on my Growth Investor Buy List.
In the new Growth Investor Monthly Issue, set to be released tomorrow, I’ll be adding one new fundamentally superior tech stock to my Buy List… one that could profit from accelerating AI adaptation. I’ll also be recommending three other companies that are showing superior fundamentals.
My new issue goes live tomorrow.
(If you are already a Growth Investor subscriber, I’ll send you the new monthly issue as soon as it’s released tomorrow. In the meantime, you can log in here to view your subscription.)
Sincerely,
Louis Navellier
P.S. Our elected leaders tell us that everything is ok… that the economy is “back on track”… that the worst is behind us.
But the average American knows that deep down things are not OK.
I believe that no responsible, hardworking American should have worry about outliving their money.
That’s why I created this new video.
In this video, I’m going to pull back the curtain and show you what I, and what many people in my inner circle, are doing right now.
Click this link for the full details.
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
NVIDIA Corporation (NVDA) and Microsoft Corp. (MSFT)
