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The Nasdaq Composite closed at a record high on Thursday, 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 - Free Report), 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 - Free Report) stole the show, jumping 49.4% on the day, followed by gains of 32.3% for Sunrun Inc. (RUN - Free Report), 22.4% for Advantage Solutions (ADV - Free Report), 21.6% for Ziff Davis (ZD - Free Report), and 20.3% for Groupon (GRPN - Free Report).

Key Reasons Behind the Nasdaq's Surge - Strong Earnings

Despite tariff concerns, investor sentiment was buoyed by better-than-expected corporate earnings reports.

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.

Now, let’s take a closer look at the fundamentals of the QQQ ETF.

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) rating with a Medium risk outlook.

The Best Stocks of QQQ

Presented below is a brief rundown of the previously-mentioned stocks in the QQQ ETF.

Aveanna Healthcare

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 it currently maintains a Zacks Rank #1 (Strong Buy) rating. Aveanna Healthcare has a Growth Score of A.

Sunrun

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) rating.

Advantage Solutions

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 it currently maintains a Zacks Rank #3 (Hold) rating.

Ziff Davis

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 it currently maintains a Zacks Rank #3 (Hold) rating. It also has a Growth Score of D.

Groupon

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 (Strong Buy) rating, and it has a Growth Score of A.

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