Nasdaq hits record high as AI spending and strong tech profits fuel rally. Analysts see further upside potential in some companies despite growing investor caution. These companies stand out for strong growth, exposure to AI and upside potential.
The price closed at 26,274.13 points on Monday, May 11, reaching a new record high. The index has gained about 15% this month, making it its strongest monthly performance since April 2020 following a strong tech earnings season.
According to analysts at the Schwab Center for Financial Research, the technology sector saw profit growth of 46.3% last quarter. Among large companies, Alphabet surged nearly 34% in April, adding about $1.17 trillion to its market value and becoming the second most valuable company in the world. Meta and Microsoft also said their AI spending in 2026 will almost double from 2025, showing that investments in AI infrastructure continue to grow rapidly.
Economic data also supported market sentiment. The U.S. economy added 115,000 jobs in April, nearly twice the market estimate, while the unemployment rate remained at 4.3%. These numbers helped ease recession fears and support investor interest in growth stocks.
Dan Ives Sees NASDAQ Composite Index at 30,000 as These Stocks Offer Upside Potential
This raised hopes that the NASDAQ Composite rally could continue. Dan Ives said on CNBC on Monday that the index could reach 30,000 points over the next year, which would mean an additional 14% gain from current levels.
He based his views on the latest earnings season.
“These results support the optimistic case for AI. Demand for chips is far greater than supply. We are still in the early stages of the AI revolution,” he said.
Still, many tech stocks now look expensive, and investing when markets are at record highs requires increased caution.
For investors seeking exposure to the NASDAQ Composite without relying heavily on large-cap stocks that are already trading at record highs, Investing.com’s analyzer can help find Nasdaq-listed companies that still show strong upside potential based on valuation models and analysts…
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