Nasdaq Sell-Off: Why Investors Should Hold Onto Key Stocks

Recent Nasdaq sell-off prompts investors to consider holding Alphabet, Amazon, and NVIDIA. Despite a correction, these stocks show potential for gains amidst rising revenues and market leadership.

Date: 13-03-2025

AI Rating: 7

The recent report highlights a significant sell-off in the Nasdaq index, primarily driven by the so-called "Magnificent Seven" stocks, which have seen valuations rise to historical averages and raised recession concerns. However, the report emphasizes the potential for recovery in three major stocks: Alphabet, Amazon, and NVIDIA.

Earnings Growth Insights: Alphabet is experiencing a robust performance with its Google Cloud segment, which has seen a notable increase in revenues and operating income, indicating a shift toward profitability. The company is expected to see an earnings growth rate of 10.7% this year. Amazon's earnings growth is even more promising, projected at 14.3%, benefiting from its profitable AWS unit and robust ad business. Additionally, NVIDIA is set to witness an impressive earnings growth rate of 46.8%, driven by high demand for its new Blackwell chips and strong market leadership in the GPU space.

Conclusion: While the overall outlook for the market appears challenging due to external factors such as tariffs and potential government shutdowns, the individual performance indicators of Alphabet, Amazon, and NVIDIA suggest a strong foundation for these companies. Their projected earnings growth rates reflect a potential for resilience and recovery post-sell-off, making them attractive options for investors looking for long-term gains.

Stocks: AMD NVDA AMZN GOOGL