3 Stocks to Boost Your Portfolio as Nasdaq Hits All-Time High

Nasdaq hit a fresh all-time closing high on Wednesday as investors grew hopeful about a rate cut in the coming weeks. Markets remained volatile over the past couple of months, which saw the tech-heavy index face several challenges.However, easing geopolitical tensions and tariff woes, along with optimism surrounding rate cuts, have helped the index make a solid rebound. The Nasdaq rally is primarily being driven by mega-cap tech stocks that stand to benefit from a rate cut and the ongoing enthusiasm surrounding artificial intelligence (AI).Given the ongoing tech rally and expectations of more rate cuts this year, it would be ideal to invest in Nasdaq stocks such as Microsoft Corporation MSFT, Visa Inc. V and Mastercard Incorporated MA, whichhave strong potential for the near term. These stocks have a Zacks Rank #1 (Strong Buy) or 2 (Buy) and assure good returns. You can see the complete list of today’s Zacks #1 Rank stocks here.Nasdaq on a RallyOn Wednesday, Nasdaq jumped 0.9% to hit a fresh closing high of 20,393.13 points. The tech-heavy index had earlier set a record high on Monday after climbing 0,5% to close at 20,369.73 points. Year to date, the Nasdaq Composite has gained 5.6% after surging 28.6% in 2024 to record its best year since 2020.Wednesday’s rally was led by tech stocks after the United States announced that it reached a trade deal with Vietnam. Several tech stocks have production units outside the United States, especially in Vietnam and China. Tech stocks had taken a beating after President Donald Trump announced sprawling tariffs on all trading partners of the United States in April.Tech stocks took an immediate hit as 145% tariffs were slapped on all Chinese imports. However, Nasdaq has made a remarkable comeback since April, following Trump's announcement of a temporary 90-day pause on tariffs and the initiation of negotiations with several countries.Last month, the White House said that it reached a trade deal with China, and now a trade agreement with Vietnam should lift investors’ sentiment.AI Enthusiasm Driving Nasdaq RallyAlthough AI experts remain divided on the future of generative AI, the overall enthusiasm for this field has been remarkable over the past couple of years. Several experts believe that AI is still in its early development phase, with vast untapped potential. NVIDIA Corporation NVDA has emerged as a leader in the generative AI space, playing a key role in driving growing interest in the technology. So far this year, NVIDIA’s stock has jumped 17.10%.NVIDIA’s solid progress in generative AI has prompted other major tech companies to make their own mark in this evolving area. At the same time, the rise of smart devices is further boosting demand, as these gadgets rely on computing and machine learning capabilities for features such as facial recognition, image processing, and video analysis. These tasks require high-performance processors, fast speeds, ample memory, energy efficiency, and advanced graphics capabilities — all of which create strong demand within the semiconductor sector.As a result, the semiconductor industry has been witnessing a robust recovery over the past two years.Also, a shrinking job market and a steady decline in inflation over the past three months have raised hopes that the Federal Reserve will go for a rate cut as early as July. This is likely to further boost growth-oriented assets, particularly technology stocks. Generally, lower interest rates tend to favor such assets. Currently, investors are anticipating two rate cuts of 25 basis points each this year, which is expected to provide further support to tech stocks.3 Nasdaq Stocks With UpsideMicrosoft CorporationMicrosoft Corporation is one of the largest broad-based technology providers in the world. MSFT dominates the PC software market, with more than 73% of the market share for desktop operating systems. Microsoft Corporation’s Microsoft 365 application suite is one of the most popular productivity software globally. MSFT is also one of the prominent public cloud providers that can deliver a wide variety of infrastructure-as-a-service and platform-as-a-service solutions at scale.Microsoft Corporation has an expected earnings growth rate of 13.2% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last 60 days. MSFT presently carries a Zacks Rank #2.Visa Inc.Visa Inc. operates as a payments technology company all over the world. The company went public in March 2008 via an initial public offering (IPO). V provides transaction processing services (primarily authorization, clearing and settlement) to financial institutions and merchant clients through VisaNet, its global processing platform.Visa has an expected earnings growth rate of 12.9% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last 60 days. V presently carries a Zacks Rank #2.Mastercard IncorporatedMastercard Incorporated is a leading global payment solutions company that provides an array of services in support of credit, debit, mobile, web-based and contactless payments, and other related electronic payment programs to financial institutions and other entities. MA’s payment solutions include payment programs, marketing, product development, technology, processing, consulting and information services. Mastercard has an expected earnings growth rate of 9.5% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.4% over the last 60 days. MA presently carries a Zacks Rank #2.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis Report Mastercard Incorporated (MA): Free Stock Analysis Report Visa Inc. (V): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks