In the dynamic investing world, selecting standout stocks from the bustling Nasdaq can be a game-changer. As the market navigates through mid-year economic indicators and corporate earnings reports, some Nasdaq-listed companies show promising resilience and potential for significant growth.
The Nasdaq Index has demonstrated robust performance over recent months, driven primarily by the resurgence of technology stocks and a favorable economic outlook. In the first half of 2024, the index saw a significant rise. This is a continuation of the positive momentum from 2023 when it returned 44% to investors. Advancements in artificial intelligence have fueled this upward trend, as have strong earnings reports from major tech companies and investor optimism around the Federal Reserve’s pause on interest rate hikes.
Investors looking for Nasdaq stocks to buy in July should focus on companies with strong fundamentals, innovative business models and robust growth prospects. In this context, here are three stocks worth buying in July. These stocks are not just surviving; they’re poised to thrive amidst the complexities of global economic uncertainties and shifting market dynamics.
Adobe (ADBE)
Adobe (NASDAQ:ADBE) stands at the forefront of the digital media and creative software sector. With its flagship products like Photoshop, Illustrator and Premiere Pro, Adobe has traditionally led the market. However, integrating AI technologies has transformed these applications into more powerful and user-friendly tools, catering to a broader range of professionals and amateurs alike.
One of Adobe’s standout AI innovations is the Firefly platform, which has generated more than 7 billion images since its inception. Adobe’s AI tools, including the Acrobat AI Assistant and the generative AI capabilities within Firefly, have significantly enhanced users’ productivity and creativity options, contributing to a robust user engagement and retention metric.
Adobe’s commitment to AI has translated into financial success. For instance, introducing AI features in Acrobat has led to record revenue growth in Document Cloud, signaling strong market demand for AI-enhanced productivity tools. Similarly, Creative Cloud has benefited from higher ARPU (Average Revenue Per User) plans that include advanced AI functionalities, driving revenue growth in this segment.
Zoom (ZM)
Zoom (NASDAQ:ZM) became a household name during the pandemic when its video conferencing software became essential for businesses and individuals. Despite the easing of pandemic restrictions, Zoom continues to be a significant player in the communication software industry.
Zoom reported a modest top-line growth rate of 3% in the most recent quarter of Q1 2025, bringing in revenues of $1.1 billion. Although slower than the explosive rates seen during the pandemic, this growth still indicates stability in Zoom’s core business operations. The enterprise segment, contributing 58% of the revenues, showed a slightly higher growth rate of 5% year-over-year (YoY), suggesting that Zoom’s services remain critical for business operations.
Zoom is actively investing in artificial intelligence to enhance its platform’s capabilities. The launch of Zoom AI Companion is a strategic move to integrate advanced AI features across its suite of products, including Zoom Meetings and Zoom Team Chat. This AI integration aims to boost productivity and improve user engagement, which could be a significant growth driver as the enterprise AI market is expected to expand substantially in the coming years.
Broadcom (AVGO)
Broadcom (NASDAQ:AVGO) is a powerhouse in the semiconductor industry. The company has been at the forefront of integrating AI into its extensive portfolio, notably after acquiring VMWare, which expanded its software capabilities significantly.
Broadcom’s stock performance has been exceptional, particularly following strategic expansions into AI-related technologies. The company’s shares have grown robustly, underpinned by solid financial results and positive forward-looking management guidance. For instance, in the fiscal year 2024, Broadcom’s AI-related revenues are projected to represent more than a third of the total revenues, underscoring its growing influence in the AI chip market.
Broadcom has aggressively pursued AI opportunities, collaborating with industry giants like ByteDance to enhance its AI chip development. The company’s upgrades to the VMWare Cloud Foundation, aimed at enhancing infrastructure for AI workloads, are a testament to Broadcom’s commitment to remaining at the cutting edge of technology.
These strategic measures of the company align with the broader industry trend where semiconductor companies are increasingly focusing on AI and data centers due to the escalating demand for more sophisticated computing capabilities.
On the date of publication, Mohammed Saqib did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
