Last month was another solid one for the Nasdaq-100 index. All told, it advanced by 3.3%, bolstering the index's excellent year-to-date performance of 8.3%. However, some stocks significantly outperformed the index in the month of July. In fact, two stocks were able to notch monthly returns that were 6x what the index produced.
Let's take a closer look at those two stocks and see why they logged such terrific performances.
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Advanced Micro Devices
First up is Advanced Micro Devices (AMD -7.08%). This stock advanced by a staggering 29.5% in the month of July, topping all other companies within the Nasdaq-100, and bringing AMD shares back within range of the stock's all-time high.
The company designs and sells microprocessors, including graphics processing units (GPUs), which are integral to the growing artificial intelligence (AI) economy.
AMD shares surged in July as the company continues to enjoy strong momentum from its "Advancing AI" event held in June. There, the company announced a series of AI initiatives designed to challenge Nvidia's control of the lucrative AI chips market.
Looking ahead, according to consensus estimates compiled by Yahoo! Finance, sell-side analysts expect AMD to generate $32.1 billion in revenue this year, up 24.5% from last year.
Synopsys
Next up is Synopsys (SNPS -0.78%), which recorded a monthly return of 21.4%.
Synopsys is another company with deep ties to the AI economy. Its semiconductor design software is critical for chip designers like AMD and Nvidia. Consequently, investors are bullish on Synopsys' prospects. The company has averaged double-digit revenue growth over the last five years as demand for semiconductor design software has remained robust.
As for the future, analysts think there is plenty of additional growth ahead for the company. According to consensus estimates compiled by Yahoo! Finance, Synopsys is expected to report $7.4 billion in revenue this year, up 21% year over year.
