the Nasdaq Composite The fire has been on fire over the past two years, driven by the rise of artificial intelligence (AI), improving economic conditions, uncontested elections, and recent moves by the Federal Reserve to lower interest rates. After returning 43% in 2023, the tech-focused index is up nearly 30% in 2024. History suggests the rally is likely to continue through 2025.
The current bull market began on October 12, 2022, and although every rally is different, history can provide important context. Bull markets last more than five years on average. Since the current rally is entering its third year, there is a strong possibility that the Nasdaq will continue to make gains in the coming year. It’s also worth noting that the Nasdaq has gained 73% of the time, dating back 53 years, so history is on investors’ side. Finally, the Nasdaq jumped 12%, on average, in the years following positive gains, indicating that there is additional upside ahead.
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Moreover, there has been a revival in popularity Stock splits Over the past few years. As a result, there is renewed investor interest in companies that undergo stock splits, as this is historically preceded by years of strong sales and earnings growth. One of these companies is Nvidia (Nasdaq: NVDA). The stock has gained 26.920% over the past decade (as of this writing), prompting management to start… 10-for-1 stock split Earlier this year – after a 4-to-1 split in 2021.
Despite the recent surge, there’s reason to believe Nvidia’s growth spurt will continue into 2025. Read on to find out why.
Adoption of generative AI has spread like wildfire over the past couple of years, with companies eager to share in the productivity increases promised by these advanced algorithms. Generative AI has proven adept at crafting and summarizing emails, searching and condensing content, mining data, creating original content, and writing computer code — and new applications are being discovered every day. Automating and simplifying tasks saves users time and money, driving new users to adopt AI.
Nvidia pioneered the graphics processing units (GPUs) that make all of this possible. These specialized chips provide the massive number-crunching power that brought artificial intelligence to life. The secret is parallel processing, or breaking down computer-intensive tasks into smaller, more manageable parts. Nvidia first developed these chips to deliver lifelike visuals in video games, but soon discovered other applications for this advanced technology, including data centers, high-performance computing (HPC), and machine learning — a former branch of artificial intelligence.
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