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Nvidia is the top performer in the S&P 500 and the Nasdaq 100 for the first half of 2023.
Justin Sullivan/Getty Images
Friday’s session marked the end of the first half of 2023 – and the six-month period was one for the history books.
Silicon Valley Bank and Signature Bank went bankrupt earlier this year, sending a jolt of fear among investors, but attention quickly turned to tech stocks amid excitement over artificial intelligence. All of this came amid growing tension between the United States and China, with Russia battling Ukraine and the Federal Reserve battling inflation by raising interest rates, sparking concerns over a possible recession.
“Investors have had a lot to deal with so far in 2023. Moderate economic growth, persistent inflation, volatile interest rates, falling profits, strains in the banking sector, the war in Ukraine and the debate on the debt ceiling all combined to weigh on sentiment,” said John Lynch, chief investment officer for Comerica Wealth Management. “Nevertheless, large-cap stocks and megacap tech names surged higher, offering some relief to investors.”
Not all stocks performed equally well. Here’s a look at the best and worst performing stocks in the
Dow Jones Industrial Average
,
S&P500
,
And
Nasdaq 100
after the last trading session of the first half of 2023.
Best Performers
The S&P 500 and Nasdaq 100 share the same best performing stock:
Nvidia
.
The chipmaker (ticker: NVDA) soared 189% this year to $423.02, which was the best stock on record in the first half, according to Dow Jones Market Data.
Most of the gains come from excitement about the future of AI.
Nvidia
Chips are used to power computers used for generative AI.
“NVDA is uniquely positioned to transform the $1 trillion non-accelerated data center market with its comprehensive artificial intelligence platform,” BofA Securities analyst Vivek Arya wrote in a June research note. . He rates the stock as a buy with a price target of $500.
The 12-month average price target among 49 analysts tracked by
set of facts
is $457.56.
Selling power
(CRM) was the best performing stock in the Dow Jones in the first half of the year as the stock jumped 59% to $211.26. The cloud-based software provider, another company riding the AI wave, also had its best first half on record.
In March, Salesforce unveiled Einstein GPT to provide generative AI tools across its software business. In June, it announced AI Cloud, customer relationship management software that combines AI with data from multiple sources “to deliver reliable, open, real-time generative AI that’s enterprise-ready.”
“We estimate the AI monetization opportunity will reach $800 billion over the next decade with the Game of Thrones battle unfolding in the tech space and CRM’s key decision to integrate solutions of generative AIs to improve the efficiency of its platform puts the company in an enviable position to capitalize on the AI gold rush,” Wedbush analyst Dan Ives wrote in a statement. research note from June 13. It rates the stock as an outperformer with a price target of $240.
The worst performers
Walgreens Boot Alliance
(WBA), which fell 24% to $28.49 this year, fell the most among Dow stocks. The stock has fallen around 9% this week alone.
This week, the drugstore chain cut its profit outlook for the year and said earnings in its latest quarter were hit by lower volumes of Covid-19 tests and vaccinations. Walgreens also warned that shoppers have become “more cautious” and are looking to spend more on valuable products.
Advanced auto parts
(AAP), another consumer-oriented company, was the weakest stock in the first half of 2023 for the S&P 500. Shares of the automotive retailer have fallen 52% this year to $70.30 apiece.
In May, the company reported first-quarter earnings of 72 cents a share, less than a third of the Wall Street consensus forecast of $2.56. Advance Auto Parts’ full-year earnings forecast was disappointing and management cut the dividend.
“We expect the competitive momentum we faced in the first quarter to continue, which will lag our expectations for 2023,” Chief Executive Tom Greco said in the company’s earnings release.
JD.com
(JD) led the Nasdaq 100 losers. The Chinese e-commerce company’s U.S. certificates of deposit fell 39% in 2023, making it the worst first half on record.
JD.com
reported a profit beat for its first quarter in May. However, the stock fell as traders worried about a new wave of Covid-19 cases in China. These cases came after the country implemented strict containment measures that impacted both the Chinese economy and the global economy.
Investors were also concerned about the future of Chinese stocks on Friday, following new data showing that the Chinese economy is struggling.
Write to Angela Palumbo at angela.palumbo@dowjones.com