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5 Tech Stocks That Led the Nasdaq ETF Rally

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·4-min read
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  • MRVL
  • ASML
  • NXPI
  • IVZ
  • NVDA
  • PDD
  • COMP

The Nasdaq Composite Index, which was badly beaten down by the Omicron impact, showed a strong reversal on the Dec 7 trading session. The benchmark climbed 3%, marking the best one-day gain since Mar 9. Invesco QQQ QQQ, which serves as a proxy to the index, also jumped 3%.

Most of the rally was driven by the comeback in technology stocks as investors jumped into the sector to tap the beaten down prices. Though most of the stocks in QQQ’s portfolio delivered strong returns on the day, a few tech stocks led the way higher. These include Pinduoduo Inc. PDD, NVIDIA Corporation NVDA, Marvell Technology MRVL, ASML Holding ASML and NXP Semiconductors NXPI.

Optimism that the Omicron variant is less fearful than expected rekindled investors’ confidence in riskier assets. Dr. Anthony Fauci, the White House chief medical adviser, said that early indications of Omicron suggest that it may be less dangerous than the Delta variant (read: 5 Top-Ranked ETFs to Buy At Bargain Prices).

Additionally, British drugmaker GlaxoSmithKline added to the strength by saying that its monoclonal antibodies treatment is effective against all strains of the Omicron variant, based on new data. This will continue to boost technology spending.

Let’s take a closer look at the fundamentals of QQQ.

QQQ in Focus

Invesco QQQ provides exposure to the 102 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Information technology accounts for 50.8% of the assets, while communication services and consumer discretionary make up for 17.8% and 17.4% share, respectively (read: Here's Why You Need to Bet on Big Tech ETFs Right Now).

Invesco QQQ is one of the largest and most-popular ETFs in the large-cap space with AUM of $206.3 billion and an average daily volume of around 41 million shares. Invesco QQQ charges investors 20 bps in annual fees. The fund has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.

Below we have highlighted the above-mentioned five best-performing tech stocks in the ETF with their respective positions in the fund’s basket.

Top-Performing Tech Stocks in QQQ

Pinduoduo provides an e-commerce platform allowing users to participate in group buying deals, primarily through Tencent's Wechat app. Pinduoduo climbed 12.5% on Dec 7 and accounts for 0.14% in the fund’s basket.

PDD has an estimated earnings growth of 173.9% for this year and a Zacks Rank #3 (Hold). Pinduoduo carries a top Growth Score of A.

NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, or GPU. It makes up for 5% share in the fund’s basket and has gained 8% on a day (read: 5 ETFs That Survived the Last Week's Rout).

NVIDIA has estimated earnings growth of 73.2% for fiscal year (ending January 2022). The stock carries a Zacks Rank #2 and a Momentum Score of A.

Marvell Technology is a fabless designer, developer and marketer of analog, mixed-signal and digital signal processing integrated circuits. MRVL gained 7.1% in a month and accounts for 0.5% in the fund’s basket.

Marvell Technology has an expected earnings growth rate of 60.9% for fiscal year (ending Jan 2022) and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

ASML Holding is a world leader in the manufacture of advanced technology systems for the semiconductor industry. The stock has surged 6.6% on a day and has 0.4% exposure in the fund’s basket.

ASML Holding has an estimated earnings growth of 64.4% for this year. ASML has a Zacks Rank #3 and a Growth Score of B.

NXP Semiconductors provides high-performance, mixed-signal and standard product solutions that leverage its RF, analog, power management, interface, security, as well as digital processing expertise.

NXP Semiconductors jumped 6.5% on Dec 7 and its earnings are expected to increase 34.8% for this year. The stock makes up for 0.4% of assets in QQQ and has a Zacks Rank #3. NXP Semiconductors has a Growth Score of B.
 


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NVIDIA Corporation (NVDA) : Free Stock Analysis Report
 
ASML Holding N.V. (ASML) : Free Stock Analysis Report
 
Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report
 
NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report
 
Invesco QQQ (QQQ): ETF Research Reports
 
Pinduoduo Inc. Sponsored ADR (PDD) : Free Stock Analysis Report
 
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