Nasdaq correction due to economic concerns, recommended to hold Alphabet, Amazon, NVIDIA for potential gains

From Nasdaq: 2025-03-12 08:26:00

In recent trading, the Nasdaq experienced a significant sell-off, entering correction territory. Concerns of recession, tariff wars, and government shutdowns led by the “Magnificent Seven” stocks contributed to the decline. Despite this, it’s recommended to hold onto Alphabet, Amazon, and NVIDIA for potential gains.

Alphabet’s Google Cloud and Services segment showed growth with increased revenues and operating income. The company invested heavily in AI initiatives, including a custom AI chip, and aims to capitalize on AI growth opportunities. The expected earnings growth rate for the current year is 10.7%.

Amazon’s AWS segment is a profit-generating unit, recording substantial profits and rapid growth. The company invested in AI infrastructure and customer AI chips. With high margins in ad businesses and a humming e-commerce sector, Amazon’s earnings growth rate is expected to be 14.3% for the current year.

NVIDIA continues to dominate the GPU market with high demand for its CUDA software platform and Blackwell chips. The company is well-positioned to support AI growth and develop cost-effective products. The estimated earnings growth rate for the current year is an impressive 46.8%.

Zacks recommends holding onto Alphabet, Amazon, and NVIDIA, all with favorable Zacks Ranks. Additionally, Zacks has identified five stocks set to double, offering a great opportunity for potential gains. These picks have the potential to gain +100% or more in 2024, providing a chance to get in on the ground floor.



Read more at Nasdaq: Nasdaq Correction: Hold These 3 Mag-7 Stocks Instead of Letting Go