The Nasdaq index continues to be the big winner this year, having risen 27% since Januar7. It also trounced the performance of both the Standards and Practices (S&P) 500 index and the Dow Jones industrial Average. The outperformance shouldn’t come as a surprise given that the Nasdaq is weighted heavily towards technology stocks. All of the mega-cap tech stocks that have gotten a huge boost this year due to the explosive catalyst that is generative artificial intelligence (AI) are listed on the Nasdaq exchange. This year’s stock market rally has been uneven. However, its concentration in a few technology stocks has definitely benefitted the Nasdaq.
Can the outperformance continue through this year’s fourth quarter and into 2024? The outlook for stocks has gotten murkier in recent months. However, it is likely that tech will continue to outperform given that AI is in the early innings of its development. Many technology companies are seeing improved financial results after cutting staff and spending earlier in the year. Although, tech isn’t the entire Nasdaq exchange. There are many great companies for investors to choose from that are trading on the index. Here are Q4 stock predictions: three Nasdaq stocks ready to roar into 2024.
Alphabet (GOOG/GOOGL)
United Airlines (NASDAQ:UAL), whose shares also trade on the Nasdaq exchange, is ramping up as travel demand explodes in the United States and internationally. The Chicago-based carrier just ordered 110 new aircraft from both Airbus (EPA:AIR) and Boeing (NYSE:BA). It seeks to grow its fleet amid the post-pandemic travel surge. Specifically, United Airlines said that it has ordered 50 Boeing 787-9 aircraft to be delivered between 2028 and 2031. United Airlines also requested 60 Airbus A321neos for delivery between 2028 and 2030.
The company also signed options for up to 50 more Boeing 787s and purchase rights for an additional 40 Airbus A321neo aircraft by the end of this decade. Including previous orders, United Airlines now expects to take delivery of 800 new narrow body and widebody aircraft by 2032. The efforts aimed at renewing its fleet comes after United Airlines reported blowout second-quarter financial results. United Airlines announced that its profit more than tripled from a year ago. This lifted its guidance for the remainder of this year.
UAL stock has gained 11% year to date and is now up 17% throughout the last 12 months.
Advanced Micro Devices (AMD)
Advanced Micro Devices (NASDAQ:AMD) has a big catalyst this quarter with the release of its new AI microchip called the MI300X. The new chip uses up to 192 gigabits of memory, which means it can accommodate bigger AI models than just about any other chips currently on the market. AMD stock recently got a lift after Microsoft’s (NASDAQ:MSFT) Chief Technology Officer, Kevin Scott, publicly praised AMD’s technology and said that AMD’s graphics cards will be increasingly critical as AI applications grow and develop.
The excitement that is building around AMD’s technology and its growing role in AI also comes as the company continues to post strong financial results. For Q2 this year, AMD beat Wall Street forecasts on the top and bottom lines, announcing earnings per share (EPS) of 58 cents versus 57 cents that was expected, and revenue in the period of $5.36 billion compared to $5.31 billion that was anticipated. Like Alphabet, AMD can be expected to continue benefitting from its growing role in generative AI.
AMD stock has increased 60% year to date, and is up 271% throughout the last five years.
On the date of publication, Joel Baglole held long positions in GOOGL and MSFT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
