The Nasdaq Composite index has performed exceptionally well in the year so far by setting record highs for more than 60 times. The index first hit the 6,000 milestone on Apr 25, crossing the 5,000 mark after 17 years. The index has been up 27.4% in the year-to-date (YTD) period, outperforming Dow Jones Industrial Average and S&P 500 gains of 24% and 18.5%, respectively.

This can be attributed to the outstanding rally of tech stocks which constitute over 50% of weighting in the index. The technology sector has been benefiting from increasing demand for cloud-based platforms, rapid adoption of Artificial Intelligence (AI) tools, Augmented/Virtual (AR/VR) reality devices, autonomous cars, advanced driver assisted systems (ADAS), as well as Internet of Things (IoT) related software and hardware.

Needless to say, tech stocks are preferred by astute investors due to their proprietary technological expertise and heavy cash balances. These companies also relish high barriers to entry, which position the firms for faster growth in the market.

Some market pundits believe tech stocks are riding high on the years-long economic expansion, while most of them attribute part of this upsurge to the Trump administration’s pro-business policies, including tax cuts, deregulation and outlays on infrastructure.

5 Tech Stocks Outpacing Nasdaq

Here are the five Nasdaq-listed tech stocks which have performed phenomenally this year and have potential to retain the momentum in the next year as well. All these stocks have appreciated more than 50% in the year, so far, in turn helping Nasdaq outperform the market.

NVIDIA Corporation (NVDA – Free Report) remains one of the best performers in the tech space. The company has grabbed attention with striking performances on the back of impressive earnings results and strong growth projections. The stock has surged 74.7% in the year so far.

Given the accelerated momentum in AI, gaming, datacenter and automotive technology, we believe this Zacks Rank #1 (Strong Buy) stock, with long-term EPS growth estimate of 10.3%, will continue to rally in the near term. (Looking for the Best Stocks for 2018? Be among the first to see our Top Ten Stocks for 2018 portfolio here.)

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