You may have noticed that tech stocks are on fire this year. But did you know that they’ve actually never been hotter?
The tech-heavy Nasdaq 100 index is up more than 37% year-to-date. That marks the Nasdaq’s best yearly performance through June ever.
Tech stocks have never had a better start to a calendar year.
But here’s the far more important part: Whenever tech stocks start the year off this hot, they tend to absolutely soar over the next few years, too.
The last time the Nasdaq started off a year this hot was in 1998. Through mid-June, tech stocks were up about 32% year-to-date. From there, they soared another 260% over the next 21 months.
The Nasdaq also got off to a hot start in 1995. Through mid-June, tech stocks were up about 35% year-to-date. From there, they more than doubled over the next two years.
And the same thing occurred in 1991. Through mid-June, tech stocks were up about 30% year-to-date. From there, they popped another 65% over the next year and a half.
Point being: When tech stocks start off the year this hot, they tend to stay red-hot for several years.
Tech Stocks Will Keep Soaring
I’m not cherry-picking data here, either.
The Nasdaq has been up more than 30% year-to-date through mid-June just four previous times: 1987, 1991, 1995, and 1998. Each time, tech stocks were in the first innings of a multi-year surge higher.
Take a look at the chart below.
The data here is tough to argue against.
We sit in the first few innings of a big, multi-year tech stock rally.
And of course, this rally will be led by the emergence of AI technologies.
AI will fundamentally reshape the global economy over the next several years. And the companies that make and sell AI tools will see their revenues and profits surge in this new era. As that happens, AI stocks will surge higher, too.
And the gains won’t be small.
The Final Word
We think the emergence of artificial intelligence today bears strong similarities to that of the internet in the 1990s. Perhaps it is no coincidence that three of the years in which the Nasdaq started off as hot as it has in 2023 happened during the 1990s – in 1991, 1995, and 1998.
Throughout the ‘90s, the top internet stocks soared thousands of percent.
And we think that throughout the 2020s, the top AI stocks will soar thousands of percent, too.
We’ve just put together the ultimate portfolio of the top five AI stocks to buy right now to potentially turn thousands into millions over the next few years.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.