5 Stocks in QQQ ETF That Drove Nasdaq's Record Closing High

The Nasdaq Composite closed at a record high on Aug. 7, even though new tariffs on imports from dozens of countries were implemented. With this, the index has posted 17 all-time closing highs in 2025 and drove Invesco QQQ QQQ, which serves as a proxy to the index, higher.

While most of the stocks in the QQQ ETF portfolio have gained handsomely, we have highlighted five that outperformed on Aug. 7. Aveanna Healthcare Holdings AVAH stole the show, jumping 49.4% on the day, followed by gains of 32.3% for Sunrun Inc. RUN, 22.4% for Advantage Solutions ADV, 21.6% for Ziff Davis ZD and 20.3% for Groupon GRPN.

Key Reasons Behind the Nasdaq Surge

Strong Earnings

Despite tariff concerns, investor sentiment was buoyed by better-than-expected corporate earnings reports (read: Tech ETFs at the Forefront of the Market Rebound on Monday).

Tech Sector Resilience & Tariff Exemptions

President Trump announced a 100% tariff on semiconductor imports, but exempted companies that manufacture in the United States or are committed to U.S.-based production, benefiting major players like Apple (AAPL), Taiwan Semiconductor Manufacturing (TSM), Samsung and SK Hynix. This relief sparked a rally in chip and tech stocks, pushing the Nasdaq higher.

AI Momentum

The generative AI wave continues to be the tech growth engine. Demand for data centers, GPUs, AI-focused software and automation tools is driving investor enthusiasm across the board. Tech companies have poured billions into data centers and AI chips to support the growth of AI models.

Massive Capital Expenditure by Big Tech

Leading tech firms continued to ramp up their 2025 capital expenditures. Experts say this inflow of investment supports job growth and stabilizes markets, counterbalancing tariff headwinds.

Rate Cut Expectations

The latest economic data have raised the odds for the Federal Reserve to lower interest rates when it next meets in September. Lower interest rates will benefit stocks, which are more sensitive to borrowing costs. It will also ramp up consumer spending, which bodes well for economic growth.
 
Let’s take a closer look at the fundamentals of QQQ.

QQQ in Focus

This ETF provides exposure to the 101 largest domestic and international non-financial companies listed on the Nasdaq by tracking the Nasdaq 100 Index. Information technology accounts for 60.8% of the assets, while consumer discretionary makes up a 19.4% share. QQQ is one of the largest and most popular ETFs in the large-cap space with an AUM of $335.5 billion and an average daily volume of more than 43 million shares. It charges investors 20 bps in annual fees. The fund has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook (read: U.S. Equity ETF Demand Surged Last Week Despite Market Selloff).

Best Stocks of QQQ

Aveanna Healthcare is a diversified home care platform focused on providing care to medically complex, high-cost patient populations. It has an estimated earnings growth rate of 266.67% for this year and has a Zacks Rank #1. Aveanna Healthcare has a Growth Score of A. 

Sunrun develops, owns, manages and sells residential solar energy systems. The company provides solar service offerings through channels like the direct-to-consumer channel, solar partner channel and the strategic partnership channel. Its earnings are expected to decline 130.83% this year. The stock has a Zacks Rank #3 (Hold). 

Advantage Solutions is a business solutions provider for consumer goods manufacturers and retailers. It has an estimated earnings growth rate of 178.57% for this year and has a Zacks Rank #3.

Ziff Davis is a vertically focused digital media and Internet company whose portfolio includes brands in technology, entertainment, shopping, health, cybersecurity and martech. The stock has an expected earnings growth rate of 5.44% for this year and has a Zacks Rank #3. It has a Growth Score of B. 

Groupon offers a marketplace that connects consumers to merchants. It has an estimated earnings growth rate of 120%. The stock sports a Zacks Rank #1 and has a Growth Score of B. 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research