'A new tech bull market has begun': Time to buy the ASX Betashares Nasdaq 100 ETF?

The Nasdaq 100 has soared 39% in 2023 and the AI frenzy could see that performance continue.

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The Betashares NASDAQ 100 ETF (ASX: NDQ) is back in the spotlight today.


Because the United States tech sector has been on fire.

That's seen the NASDAQ 100 (INDEXNASDAQ: NDX) rocket 39% so far in 2023.

NDQ, an ASX-listed ETF (exchange-traded fund), intends to track the performance of the Nasdaq 100. And it's done a good job of it. The ETF is up 37% since the opening bell on 3 January.

And the good times may well have legs.

With some helpful fuel from the booming interest in AI technology, numerous analysts are expecting this sizzling run on the Nasdaq 100 to continue into 2024.

What tech stocks does the ASX-listed NDQ hold?

The Betashares NASDAQ 100 ETF gives investors direct exposure to some of the world's leading tech companies with a single ASX investment.

The NDQ ETF's top four holdings (in order) are: Microsoft Corp (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), Nvidia Corp (NASDAQ: NVDA), and Apple Inc (NASDAQ: AAPL). NDQ also holds Netflix Inc (NASDAQ: NFLX) and numerous other household tech names.

Why are these analysts bullish on the Nasdaq 100?

Managing director of Wedbush Securities, Dan Ives, believes artificial intelligence will keep the tech bull run going into 2024.

According to Ives (courtesy of The Australian Financial Review)

We believe a new tech bull market has begun to take shape being led by the AI Revolution and we expect to see a better than expected 2Q earnings season for the tech space over the next few weeks.

While multiple expansion was the name of the game for the tech sector so far in 2023, we believe further evidence of this generational AI spending trend will be sprinkled in the forecasts/commentary from Microsoft, Google, Amazon, Nvidia, AMD, IBM, and other tech software/chip stalwarts during this key 2Q earnings season and be a catalyst for a broader tech rally ahead.

In potentially good news for the ASX-listed NDQ, Wedbush Securities expects the Nasdaq 100 will gain another 12% to 15% by the time we flip our calendars to 2024.

And Wedbush is far from alone.

Fundstrat Global technical strategist Mark Newton also sounded a positive note on some of the top Nasdaq 100 listed tech stocks.

"While the May-June rally caused 'FANG' to become a bit stretched from its uptrend from late 2022, this hasn't signalled any reason to want to avoid this area within technology," Newton said (quoted by the AFR).

Newton added:

My own technical analysis on both Apple along with Microsoft and Netflix suggests these remain quite healthy technically and all should push back to new all-time highs.

Amazon and Meta are a bit stretched near-term. However, no credible evidence of any trend deterioration has occurred which would make avoiding these names prudent.

ASX investors wanting exposure to the further potential upsides of these rocketing Nasdaq 100 stocks may wish to investigate the NDQ ETF.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon.com, Apple, BetaShares Nasdaq 100 ETF, Microsoft, Netflix, and Nvidia. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Amazon.com, Apple, Netflix, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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