Nasdaq Poised for Gains in 2025: AMD and Dell Tech Stocks to Surge 25% to 40%

The Nasdaq Composite index has a history of averaging a 17% return following a year with a 20% or more gain. With the tech-laden index up 28.6% in 2024, historical trends suggest it could deliver more gains in 2025. Two AI stocks expected to bounce back are Advanced Micro Devices (AMD) and Dell Technologies (DELL), with AMD's 12-month consensus price target at $183, a 41% jump from current levels.

The Nasdaq Composite index, known for its tech-heavy composition, has consistently demonstrated impressive returns following years with significant gains. With the index closing 2024 with a robust 28.6% increase [1], historical trends suggest that investors may expect further growth in 2025.

According to an analysis of the index's performance over the past five decades [2][3], the Nasdaq Composite has averaged a 17% return in the year following a year with a 20% or more gain. This trend, rooted in the index's emphasis on technology stocks, reflects the sector's potential for continued innovation and growth.

Two AI stocks expected to benefit from this upward trend are Advanced Micro Devices (AMD) and Dell Technologies (DELL). Both companies have shown resilience in the face of market volatility and have the potential to deliver substantial returns for investors.

Advanced Micro Devices (AMD), a leading semiconductor company, is currently trading at around $133, with a 12-month consensus price target of $183, representing a potential 41% increase [4]. AMD's strong performance in 2024, driven by increased demand for its graphics processing units (GPUs) and central processing units (CPUs), positions the company well for continued growth in the coming year.

Dell Technologies (DELL), a global technology infrastructure company, is currently trading at around $100, with a 12-month consensus price target of $140, representing a potential 40% increase [4]. Dell's diverse portfolio of products, including servers, storage systems, and PCs, has enabled the company to weather market fluctuations and maintain a strong market position.

In conclusion, the historical performance of the Nasdaq Composite index suggests that investors can expect further gains from tech stocks in 2025. Advanced Micro Devices (AMD) and Dell Technologies (DELL) are two AI stocks that are well-positioned to capitalize on this trend and deliver substantial returns for investors.

[1] Macrotrends. (2024). Nasdaq Composite Index Historical Data. Retrieved from https://www.macrotrends.net/1320/nasdaq-historical-chart
[2] Federal Reserve Bank of St. Louis. (n.d.). NASDAQ Composite Index [NASDAQCOM]. Retrieved from https://fred.stlouisfed.org/series/NASDAQCOM
[3] Investing.com. (n.d.). NASDAQ Composite Historical Data. Retrieved from https://www.investing.com/indices/nasdaq-composite-historical-data
[4] Macrotrends. (2024). Advanced Micro Devices (AMD) Stock Price, Stock Quote, Chart, News and Financial Data. Retrieved from https://www.macrotrends.net/stocks/charts/AMD/advanced-micro-devices-inc
[4] Macrotrends. (2024). Dell Technologies, Inc. (DELL) Stock Price, Stock Quote, Chart, News and Financial Data. Retrieved from https://www.macrotrends.net/stocks/charts/DELL/dell-technologies-inc