The Nasdaq Composite Index added an impressive 21% during 2025, driven by continued strength in tech, AI, and growth stocks despite some volatility. It ranks as a good mid-to-upper range gain, comparable to solid bull market years like 2021 (+21.39%) or 2017 (+28.24%), but below the explosive rebounds or bubble peaks like 1999, 2003, 2009, 2020 or 2023. The 10-year annualized average is 15%.

As you can see from the chart, the bulk of the gains came from April to late October, with the index consolidating gains and trading mostly sideways in recent months. In the past month, the Nasdaq added a modest 0.7%.

The index is trading above all key exponential moving averages (EMAs) and has found support at the green trend line multiple times in recent months. The RSI at 56 has room for another rally in the months ahead, which I think is likely after consolidating and forming a base over the past few months.

Takeaway: I expect another year of solid gains for the Nasdaq, driven by AI, robotics, and macro factors such as lower rates and greater global liquidity. I think the optimal time to increase exposure is on dips to the green line, which is roughly aligned with the 100-day exponential moving average.