In this piece, we will take a look at the 12 best performing NASDAQ stocks in 2023. If you want to skip our introduction to the NASDAQ's performance this year and the broader stock market, then read 5 Best Performing NASDAQ Stocks in 2023.
The NASDAQ has been one of the best performing stock indexes not only in the U.S. but also in the world this year. The index, which was set up in 1971, is dominated by big technology stocks which include the largest companies in the world such as Apple Inc. (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT). Additionally, NVIDIA Corporation (NASDAQ:NVDA), whose shares are up by a whopping 193% year to date on the back of considerable hype surrounding artificial intelligence, is also listed on the exchange, and cumulatively, the strength of the big technology firms on the back of their ability to leverage artificial intelligence (AI) has done wonders for the NASDAQ when it comes to share price returns in 2023.
In fact, the first half of 2023 was quite remarkable on the economic front as well. This is because the U.S. economy continued to grow even as most analysts and economists had predicted that a recession was just around the corner. Naturally, the strong economy emboldened stock market investors, and their optimism was further fueled by the AI wave that we've mentioned above. For the NASDAQ, this enabled the index to post stunning returns. The stock index is primarily analyzed through the returns of the NASDAQ Composite index and the NASDAQ 100 index. The former consists of most of the stocks that are traded on the NASDAQ, while the latter is made up of the largest non financial firms listed on the NASDAQ in terms of their market capitalization.
As the first half of 2023 ended, the NASDAQ Composite and the NASDAQ 100 had gained 33% and 40%, which set a new record for the NASDAQ 100's performance during the first half of a calendar year. Their returns also surpassed the other two popular American indexes, namely the Dow Jones Industrial Average (DJIA) and the S&P500, which had posted 3.87% and 16.51% in returns, respectively. The Dow's performance was striking in particular, as it drew a sharp contrast between the returns offered by an index designed to be a broader representation of the U.S. economy versus the NASDAQ 100 which is dominated by big tech firms. In short, while the tech sector flourished, the broader economy was still reeling from the effects of the Federal Reserve's rapid interest rate hikes and high inflation.
Building on this, we also took a look at the top stocks on the NASDAQ being bought by hedge and highly rated by analysts during the first half of this year as part of our 15 Best NASDAQ Stocks To Buy Today coverage. This revealed that the top three NASDAQ stocks among hedge funds and analysts as of March 2023 were Alphabet Inc. (NASDAQ:GOOG), DexCom, Inc. (NASDAQ:DXCM), and WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC).
Fast forwarding to October, the investing climate right now is far more muted than what was present during the first half. This is because most investors are worried that the Fed might continue to raise interest rates and that the economic climate could provide it both the incentive and the leeway to keep rates higher than expected. The labor market and inflation both continued to present trends that support this hypothesis for their September data, and fresh uncertainty was injected into the market in the form of the brutal conflict in the Middle East between Israel and Palestine. A Middle Eastern conflict is one of the riskiest developments for the financial industry since it carries the potential to disrupt the global oil supply chain. This is particularly important in the context of 2023 since the market and the economy have already dealt a similar blow last year after the Russian invasion of Ukraine. The Russian invasion shocked the global oil supply chain, caused crude oil prices to skyrocket, and led to rapid inflation - the effects of which are still being felt today in the form of high policy rates.
Fed Chairman Jerome Powell who remains the man of the hour for markets, is out with some fresh comments about the economy - the first after the Israel-Palestine conflict started. In remarks made at a luncheon at the Economic Club of New York, the Fed chairman shared that the economy might need more 'restraint' as he outlined:
Turning to monetary policy, the FOMC has tightened policy substantially over the past 18 months, increasing the federal funds rate by 525 basis points at a historically fast pace and decreasing our securities holdings by roughly $1 trillion. The stance of policy is restrictive, meaning that tight policy is putting downward pressure on economic activity and inflation. Given the fast pace of the tightening, there may still be meaningful tightening in the pipeline.
So, with these details in mind, let's take a look at the best performing NASDAQ stocks in 2023. Among these, the top three stocks are American Coastal Insurance Corporation (NASDAQ:ACIC), Soleno Therapeutics, Inc. (NASDAQ:SLNO), and MoonLake Immunotherapeutics (NASDAQ:MLTX).
12 Best Performing NASDAQ Stocks in 2023
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Our Methodology
To compile our list of the best performing NASDAQ stocks in 2023, we ranked all companies on the NASDAQ exchange by their year to date share price gains and chose the top 12 stocks.
Best Performing NASDAQ Stocks in 2023
12. Fujian Blue Hat Interactive Entertainment Technology Ltd. (NASDAQ:BHAT)
Year To Date Share Price Gains: 287%
Fujian Blue Hat Interactive Entertainment Technology Ltd. (NASDAQ:BHAT) is a Chinese toy company headquartered in Xiamen, China. The firm is currently expanding its business operations, and it seeks to leverage AI for engaging in commodities trading.
As of June 2023, three hedge funds part of Insider Monkey's 910 fund database had bought Fujian Blue Hat Interactive Entertainment Technology Ltd. (NASDAQ:BHAT)'s shares. Ryan Tolkin (Cio)'s Schonfeld Strategic Advisors is the biggest investor among these courtesy of its $189,963 investment.
Fujian Blue Hat Interactive Entertainment Technology Ltd. (NASDAQ:BHAT) joins Soleno Therapeutics, Inc. (NASDAQ:SLNO), American Coastal Insurance Corporation (NASDAQ:ACIC), and MoonLake Immunotherapeutics (NASDAQ:MLTX) in our list of 2023's best performing NASDAQ stocks.
Atlas Lithium Corporation (NASDAQ:ATLX) is a small Brazilian company headquartered in Belo Horizonte. It is a mining company with lithium, gold, and other properties. The firm has been making several management changes this year, and in October 2023 it outlined a new business strategy which included new mining areas at a Portuguese site.
During Q2 2023, two out of the 910 hedge funds part of Insider Monkey's database had held a stake in Atlas Lithium Corporation (NASDAQ:ATLX).
Applied Optoelectronics, Inc. (NASDAQ:AAOI) is a technology company that sells connectivity products to internet companies, cable television providers, and others. August 2023 was a great month for the stock, as not only did B. Riley upgrade its share rating to Buy from Neutral, but Northland Capital also maintained an Outperform rating.
By the end of this year's second quarter, ten among the 910 hedge funds profiled by Insider Monkey were the firm's investors. Out of these, Applied Optoelectronics, Inc. (NASDAQ:AAOI)'s largest shareholder is George Mccabe's Portolan Capital Management as it owns 1.2 million shares that are worth $7.2 million.
Olema Pharmaceuticals, Inc. (NASDAQ:OLMA) is a biotechnology company developing treatments for cancers that target only women. Not only is the stock rated Strong Buy on average, but analysts have priced in a whopping 108% upside to the shares based on the average share price target of $22.
After scouring through 910 hedge funds for their second quarter of 2023 shareholdings, Insider Monkey discovered that 23 had bought and invested in Olema Pharmaceuticals, Inc. (NASDAQ:OLMA)'s shares. Mark Lampert's Biotechnology Value Fund / BVF Inc is the biggest investor among these due to its $68 million stake.
Cipher Mining Inc. (NASDAQ:CIFR) is a financial technology company that operates bitcoin mining centers. Its share price appreciation is unsurprising, as a recovery in bitcoin's price in 2023 from $16,606 to $28,728 this year has also stimulated Cipher Mining Inc. (NASDAQ:CIFR)'s stock.
11 out of the 910 hedge funds part of Insider Monkey's Q2 2023 database were Cipher Mining Inc. (NASDAQ:CIFR)'s investors.
7. GraniteShares 1.5x Long NVDA Daily ETF (NASDAQ:NVDL)
Year To Date Share Price Gains: 315.98%
GraniteShares 1.5x Long NVDA Daily ETF (NASDAQ:NVDL) is an exchange traded fund (ETF) with $220 million in net assets. It is an ETF that directly tracks the shares of NVIDIA Corporation (NASDAQ:NVDA) and seeks to 1.5x times the daily returns of NVIDIA's shares. Given NVIDIA's stock price performance this year, it's no surprise that the GraniteShares 1.5x Long NVDA Daily ETF (NASDAQ:NVDL) is also one of the best performing stocks on the NASDAQ in 2023.
NeuroPace, Inc. (NASDAQ:NPCE) is a healthcare company that sells medical devices used by people suffering from epilepsy. The firm bolstered its products' data gathering and analysis capabilities in October 2023, when it announced new upgrades that will allow the products to combine data from different sources.
During 2023's June quarter, six out of the 910 hedge funds surveyed by Insider Monkey had held a stake in NeuroPace, Inc. (NASDAQ:NPCE). Samuel Isaly's OrbiMed Advisors is the biggest investor among these since it owns 4 million shares that are worth $18 million.
American Coastal Insurance Corporation (NASDAQ:ACIC), NeuroPace, Inc. (NASDAQ:NPCE), Soleno Therapeutics, Inc. (NASDAQ:SLNO), and MoonLake Immunotherapeutics (NASDAQ:MLTX) are some of the best performing NASDAQ stocks in 2023.
