By Hakiim Wampamba
Financial analysts believe that Nasdaq Index will be a force to reckon with in 2024 given the good performance in 2023. According to Nobert Kiiza a financial analyst with FX PESA , the emergence of Artificial Intelligence has presented itself as an invincible value & growth force for the index.
Nasdaq100 Index: A force to reckon with in 2024
The tech centric stock index has registered great performance in 2023. Nasdaq-100, often abbreviated as NDX is a stock market index that includes 100 of the largest non-financial companies listed on the Nasdaq stock exchange. The year-to-date performance of the index is 48.75% as per 21st November 2023. The bullish year for the tech index has been driven by big performers such as Nvidia, Meta Platforms, Tesla Inc among others.
With several tech companies posting record revenue figures as well as some tech stocks like Nvidia providing strong forward guidance on the back of increased demand for its AI chips. The potential for the returns to investors taking part in the impressive moves are high. With the vast opportunities available in the budding US stock markets, several funds and financial assets like Proshares UltraPro QQQ, UT100roll CFD are available for the retail investors to take advantage of the return opportunities.
ETFs are instruments that derive their value from an underlying asset. CFDs are contracts for differences that also derive their inherent value from an underlying asset. According to Nobert Kiiza a financial Analyst with FX PESA, the emergence of derivatives ETFs, CFDs and others, the inflow of funds through these different products has allowed liquidity to thrive in the broader financial market.
The Proshares UltraPro QQQ has tracked the index resulting into a whopping year to date performance of 162%.
Growth Drivers for Nasdaq 100 in 2024
Kiiza says that “There are still several major driving forces that could propel the index higher some of which include; the potential end of the tightening cycle in the USA; with an election year foreseen in 2024, it is possible that cash levels will increase that could allow for these assets to benefit with upside. “
The Financial Analyst believes that with the AI exuberance frenzy hitting tech sector, it is also likely that the innovation capabilities specifically for semi-conductor companies like Nvidia, AMD & Micron will all provide opportunities for Ugandans to consider for their earnings growth. These assets also available through a regulated & licensed online global broker called FXPesa.
“With the emergence of Artificial Intelligence (AI), the adoption of this technology has presented itself as an invincible value & growth force for the index.”
Some of these stocks include Amazon($AMZN); Amazon introduced an AI generative platform called AWS Bedrock that sets the precedent for training models that can be used to advance service & product capabilities for other companies. The platform has changed the spectrum of possibilities for the future and stands out as a unique value preposition for the company.
Microsoft($MSFT); One of the tech giants recently formalized a partnership with an AI firm known as OpenAI that has propelled it to fresh 52-week highs. The best is yet to come from the union of the two firms in the arena of AI product development and revenue generation avenues.
Key past performers for the Index 2023
Article written, in part, with the help of AI