Tech Stocks Shine in October: 5 Strong Performers to Watch
ByAinvest
Friday, Oct 3, 2025 9:27 pm ET2min read
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The fourth quarter, which begins in October, is traditionally the strongest period for U.S. stocks. Investors position themselves for year-end demand, particularly as tech companies gear up for holiday sales and release earnings that provide guidance into the fourth quarter and the year ahead [1]. Additionally, October often follows a September slide, with the Nasdaq 100 averaging a -0.67% return since 1985 [1]. This sets the stage for what traders often call a "buy-the-dip" month, where investors capitalize on the rebound after a weak September [1].
Five tech stocks stand out for their consistent and outsized gains during October:
1. Alphabet Inc. (NASDAQ:GOOGL): October is Alphabet's top-performing month, with an average gain of 8.35% and a 71% win rate [1].
2. Microsoft Corp. (NASDAQ:MSFT): Microsoft also sees its best monthly returns in October, averaging +4.78% with a 67% win rate [1].
3. Netflix Inc. (NASDAQ:NFLX): October is Netflix's second-strongest month, trailing only January, with a 7.1% average gain and a 70% win rate [1].
4. Lam Research Corp. (NASDAQ:LRCX): October ranks as Lam Research's second-best month, with a 7.22% average return and a 67% win rate [1].
5. Oracle Corp. (NYSE:ORCL): October is Oracle's second-strongest month after June, with a 3.8% average gain and a 63% win rate [1].
Institutional investors are also showing strong interest in Lam Research Corp. Consolidated Portfolio Review Corp increased its stake in Lam Research by 10.6% in the second quarter, owning 24,246 shares valued at $2.36 million as of the latest reporting period [3]. Other large investors, such as Vanguard Group Inc., Invesco Ltd., Goldman Sachs Group Inc., Charles Schwab Investment Management Inc., and Nuveen LLC, also increased their holdings in Lam Research during the first quarter [3]. Analysts have set new price targets for Lam Research, with Needham & Company LLC raising their target price to $115.00 and giving the company a "buy" rating [3].
While past performance does not guarantee future returns, October's seasonal strength in tech is supported by four decades of Nasdaq 100 history and consistent sector gains. For investors looking to trade with the seasonal tide, this month may present a historically favorable window for some of the biggest names in tech.
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Tech stocks tend to rally in October, with the Nasdaq 100 averaging a 2.98% gain and the Technology Select Sector SPDR Fund averaging a 2.77% gain. This is due to seasonal tailwinds and post-September rebounds. Historically, October marks the start of the fourth quarter, which is the strongest for U.S. stocks, and often follows a September slide. Five stocks to watch in October include Alphabet Inc., Microsoft Corp., Netflix Inc., Lam Research Corp., and Oracle Corp., all of which have consistently outperformed in October.
Tech stocks are poised for a strong October, as the Nasdaq 100 consistently outperforms broader market trends during this month. The Nasdaq 100, which tracks the performance of the 100 largest non-financial companies listed on the Nasdaq Stock Market, has historically shown robust gains in October, averaging a 2.98% return since its inception in 1999 [1]. This trend is mirrored by the Technology Select Sector SPDR Fund (NYSE:XLK), which has averaged a 2.77% gain in October, making it the second-best month for the ETF after November’s 2.96% gain [1].The fourth quarter, which begins in October, is traditionally the strongest period for U.S. stocks. Investors position themselves for year-end demand, particularly as tech companies gear up for holiday sales and release earnings that provide guidance into the fourth quarter and the year ahead [1]. Additionally, October often follows a September slide, with the Nasdaq 100 averaging a -0.67% return since 1985 [1]. This sets the stage for what traders often call a "buy-the-dip" month, where investors capitalize on the rebound after a weak September [1].
Five tech stocks stand out for their consistent and outsized gains during October:
1. Alphabet Inc. (NASDAQ:GOOGL): October is Alphabet's top-performing month, with an average gain of 8.35% and a 71% win rate [1].
2. Microsoft Corp. (NASDAQ:MSFT): Microsoft also sees its best monthly returns in October, averaging +4.78% with a 67% win rate [1].
3. Netflix Inc. (NASDAQ:NFLX): October is Netflix's second-strongest month, trailing only January, with a 7.1% average gain and a 70% win rate [1].
4. Lam Research Corp. (NASDAQ:LRCX): October ranks as Lam Research's second-best month, with a 7.22% average return and a 67% win rate [1].
5. Oracle Corp. (NYSE:ORCL): October is Oracle's second-strongest month after June, with a 3.8% average gain and a 63% win rate [1].
Institutional investors are also showing strong interest in Lam Research Corp. Consolidated Portfolio Review Corp increased its stake in Lam Research by 10.6% in the second quarter, owning 24,246 shares valued at $2.36 million as of the latest reporting period [3]. Other large investors, such as Vanguard Group Inc., Invesco Ltd., Goldman Sachs Group Inc., Charles Schwab Investment Management Inc., and Nuveen LLC, also increased their holdings in Lam Research during the first quarter [3]. Analysts have set new price targets for Lam Research, with Needham & Company LLC raising their target price to $115.00 and giving the company a "buy" rating [3].
While past performance does not guarantee future returns, October's seasonal strength in tech is supported by four decades of Nasdaq 100 history and consistent sector gains. For investors looking to trade with the seasonal tide, this month may present a historically favorable window for some of the biggest names in tech.
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