Tech stocks have entered one of their strongest months of the year, as the Nasdaq 100 consistently outpaces broader market trends in October, fueled by seasonal tailwinds and post-September rebounds.
Since its inception in 1999, the Invesco QQQ Trust (NASDAQ:QQQ)—which mirrors the Nasdaq 100—has averaged a 2.98% gain in October, its best-performing month, followed by a 2.77% gain in November.
Similarly, the Technology Select Sector SPDR Fund (NYSE:XLK) shows an average October return of 2.77%, also making it the second-best month for the ETF after November’s 2.96% gain.
Even when reviewing the 40-year history of the Nasdaq 100 index, October maintains a positive bias, with an average return of 1.69% and a winning ratio of 63%, outperforming most months.
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Why Do Tech Stocks Rally In October?
There are at least two key reasons for October’s seasonal strength in tech.
First, October marks the start of the fourth quarter—historically the strongest for U.S. stocks.
Investors position for year-end demand, especially as tech companies gear up for holiday sales and release earnings that provide guidance into fourth quarter and the year ahead.
Second, October often follows a September slide. Since 1985, September has been the only month with a negative average return for the Nasdaq 100, at -0.67%.
That sets the stage for what traders often call a “buy-the-dip” month.
Examples of this trend are compelling:
Sept. 2001: Nasdaq 100 fell 20.5%, then rebounded 16.8% in Oct.
Sept. 2002: Dropped 11.66%, then soared 18.86% in Oct.
Sept. 2011: Lost 4.54%, then jumped 10.33% in Oct.
Sept. 2021: Fell 5.73%, rebounded 7.9% in Oct.
Sept. 2022: Dipped 10.6%, gained 3.96% in Oct.
This pattern highlights investor psychology, where weak September months tend to flush out risk before new fourth-quarter positioning takes hold.
5 Tech Stocks To Watch In October
These five stocks stand out for their consistent and outsized gains during the month of October:
1. Alphabet Inc. (NASDAQ:GOOGL)
October is Alphabet’s top-performing month. The stock has averaged an 8.35% gain and finished higher 71% of the time.
Best October: +47.1% in 2004
Worst October: -10.3% in 2008
2. Microsoft Corp. (NASDAQ:MSFT)
Microsoft also sees its best monthly returns in October, averaging +4.78%, with a 67% win rate.
Best October: +24.95% in 2007
Worst October: -16.3% in 2008
3. Netflix Inc. (NASDAQ:NFLX)
Netflix has made October its second-strongest month, trailing only January, with a 7.1% average gain and a 70% win rate.
Best October: +70% in 2003
Notable gains: +27.6% in 2007, +26.7% in 2016
4. Lam Research Corp. (NASDAQ:LRCX)
October ranks as Lam Research’s second-best month, with a 7.22% average return and a 67% win rate.
Best October: +44.4% in 1998
Worst October: -29% in 2008
5. Oracle Corp. (NYSE:ORCL)
October is Oracle’s second-strongest month after June, with a 3.8% average gain and 63% win rate. Oracle jumped 25% in September 2025, adding momentum into this seasonally strong period
Best October: +29.64% in 2002
Worst October: -16.2% in 2000
The Bottom Line
October’s seasonal strength in tech isn’t random — it’s supported by four decades of Nasdaq 100 history, consistent sector gains, and investor behavior that favors buying weakness ahead of the fourth quarter.
While past performance doesn’t guarantee future returns, for investors looking to trade with the seasonal tide, this month may present a historically favorable window for some of the biggest names in tech.
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