2023 has been a stellar year for tech stocks, with the Nasdaq Composite up 44% through Dec. 28. The Nasdaq-100 has performed even better, rising 54.5%. The Invesco QQQ Trust, which tracks the Nasdaq-100, has seen similar gains.
While the Nasdaq Composite is still below its all-time high, the Nasdaq-100 set a new record in December. Looking back at history, the Nasdaq-100 has only reached an all-time high after a bear market once before.
The surge in tech stocks is attributed to the excitement around generative AI, with top tech CEOs praising its transformative potential. This has helped drive the gains in the Nasdaq-100 and Invesco QQQ Trust.
Despite expensive valuations, the future looks promising for top tech stocks as generative AI continues to develop. Data-center buildouts and new AI-focused products are expected to drive revenue growth in the coming years.
Investors may consider the Invesco QQQ Trust as a long-term investment, given the momentum behind generative AI. History and past tech booms suggest that more gains could be in store for the ETF and the Nasdaq-100.