The Nasdaq 100 Index has excellent long-term returns. Historically, it generally achieves 100% returns (doubling) in 5 years, and index funds tracking this index also have considerable returns.
Let's study its constituent stocks and look at the index composition. It consists of 101 stocks:
- Nvidia
- Apple Inc.
- Microsoft
- Amazon
- Alphabet Inc. (Class A)
- Alphabet Inc. (Class C)
- Broadcom Inc.
- Meta Platforms
- Tesla, Inc.
- Palantir Technologies
- ASML Holding
- Netflix
- Costco
- Advanced Micro Devices Inc.
- Cisco
- AstraZeneca
- Micron Technology
- Applovin Corp
- T-Mobile US
- Shopify
- Applied Materials
- PepsiCo
- Lam Research
- Linde plc
- Intuitive Surgical
- Qualcomm
- Intuit
- Intel
- Amgen
- Booking Holdings
- Texas Instruments
- PDD Holdings
- KLA Corporation
- Gilead Sciences
- Adobe Inc.
- Arm Holdings
- Analog Devices
- Palo Alto Networks
- CrowdStrike
- Honeywell
- Vertex Pharmaceuticals
- Constellation Energy
- ADP
- MercadoLibre
- Comcast
- DoorDash
- Starbucks
- Cadence Design Systems
- Synopsys
- Marriott International
- O'Reilly Automotive
- Regeneron Pharmaceuticals
- Airbnb
- Cintas
- Warner Bros. Discovery
- Monster Beverage
- Marvell Technology
- Mondelez International
- CSX Corporation
- Autodesk
- Fortinet
- American Electric Power
- Workday, Inc.
- Ross Stores
- Paccar
- Thomson Reuters Corporation
- PayPal
- NXP Semiconductors
- Idexx Laboratories
- Datadog
- Electronic Arts
- MicroStrategy Inc.
- Fastenal
- Roper Technologies
- Baker Hughes
- Diamondback Energy
- Take-Two Interactive
- Axon Enterprise Inc.
- Xcel Energy
- Exelon
- Atlassian
- Paychex
- Coca-Cola Europacific Partners
- Cognizant
- Keurig Dr Pepper
- GE HealthCare
- Zscaler
- Copart
- Microchip Technology
- Old Dominion Freight Line
- Verisk
- Kraft Heinz
- CoStar Group
- Charter Communications
- DexCom
- Biogen
- Lululemon Athletica
- Onsemi
- GlobalFoundries
- CDW Corporation
- Trade Desk
Top 10 weighted stocks in the Nasdaq 100 Index
- NVIDIA 8.43%
- Microsoft Corporation 7.31%
- Apple Inc. 5.80%
- Broadcom Inc. 4.58%
- Amazon 4.17%
- Tesla 3.15%
- Meta (Facebook) 2.85%
- Google C 2.82%
- Google A 2.50%
- Netflix 2.24%
In this round of AI competition, NVIDIA is very powerful, but Google is also a strong rival to NVIDIA (with its own chips and algorithms). Both AI giants are in the index and can lead the index to soar.
The Nasdaq 100 Index has relatively balanced weights, unlike the S&P Information Technology Index which is severely concentrated. In the S&P Information Technology Index, NVIDIA alone accounts for 20% of the weight, which is too fierce. NVIDIA + Microsoft + Apple accounts for 45%! That's quite exaggerated.
In comparison, I still prefer the Nasdaq 100 Index, which distributes more evenly with benefits for all.
The Nasdaq 100 Index sometimes includes some Chinese companies, such as Pinduoduo. Other Chinese companies that have previously entered the Nasdaq 100 Index include: Alibaba, Baidu, JD.com, NetEase, etc.
China's technology development is very fast, and there are many benefits to including Chinese companies in the index.
Note: This is December 2025 data. As time changes, the index composition will also change.