The Nasdaq Composite (NASDAQINDEX: ^IXIC) entered a bull market in December 2022. In the 18 months or so since, the technology-heavy index has advanced by 76% amid surging interest in artificial intelligence. But based on historical patterns, those gains are likely just the beginning.

Since 1990, the Nasdaq has returned an average of 215% during bull markets that had average durations of about 40 months. If the current bull market aligns precisely with the historical average, then the Nasdaq will climb by another 139% from its cyclical low during the next 22 months.

That does imply a somewhat unrealistic return of 61% annually. But investors still have good reason to believe the Nasdaq will soar over time. The index has risen by a total of 2,420% during the last two decades, or 11.3% annually. That period encompassed such a broad range of economic conditions that it's reasonable for investors to expect similar returns in the future.

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Source Fool.com