The Most Excellent Equities in the Nasdaq-100 Index's Leaderboard in 2024
2024 saw tech stocks soar, with AI powerhouses like Nvidia (NVDA -0.78%) and Palantir Technologies (PLTR -0.28%) propelling the S&P 500's rise. While the Nasdaq-100 slightly outperformed with a 25.9% gain, several components experienced mixed fortunes.
On the positive side, two stocks enjoyed impressive growth, significantly outpacing the broader market. However, the good performance was balanced out by declines in about 34% of the Nasdaq-100's constituents. An ETF investment minimizes this risk, granting you access to winners without the burden of losers.
The top five Nasdaq-100 gainers in 2024 were:
- AppLovin (APP -0.77%)
- MicroStrategy (MSTR 1.58%)
- Palantir Technologies
- Nvidia
- Axon Enterprise (AXON -1.90%)
AI played a pivotal role in the success of these stocks, with Nvidia being the poster child for generative AI in 2024. Meanwhile, AppLovin and Palantir attracted attention due to their AI-driven initiatives to create value for users. MicroStrategy's Bitcoin investment added to its gains, while Axon Enterprise is the sole non-service company on the list, providing safety equipment to law enforcement agencies.
Looking ahead to 2025, AI stocks, like the ones mentioned above, are expected to maintain their growth momentum as innovation continues. However, MicroStrategy's success relies on the volatile Bitcoin cryptocurrency, so its potential for repeat performances in 2025 is somewhat uncertain. AppLovin and Axon's recent market entry could be an advantage, contributing to lower market performances below the broader market's average.
Enrichment Insights:
- AppLovin's focus shift towards AI and e-commerce propelled its growth, resulting in a 25% surge during early trading in January 2025, following its impressive fourth-quarter 2024 results and guidance[1].
- MicroStrategy's growth relies on its significant Bitcoin investment, but its stock price has remained volatile due to cryptocurrency market fluctuations[1].
- Palantir's rapid growth in 2024 can be attributed to its AI platform's role in supporting commercial and government customers’ operational efficiency, as well as its strong financial performance, exceeding Wall Street's expectations[1].
- Nvidia's growth in 2024 was driven by its dominance in the AI and gaming markets and recent advancements in AI technologies[1].
[1] Enrichment Data Source: Investopedia.com.
- Investing in Nvidia stocks in 2025 could reap substantial benefits, considering its leading position in the AI and gaming markets and continuous advancements in AI technologies.
- The role of finance and investing in AI-driven companies, such as Nvidia, Palantir Technologies, and MicroStrategy, has significantly surpassed expectations, contributing to the overall rise of tech stocks.
- For those looking to diversify their portfolio in the context of tech stocks, investing in an ETF that includes AI heavyweights like Nvidia can help minimize risks while maximizing potential returns.
- The strong performance of Nvidia and other AI stocks, such as Palantir Technologies, in 2024 has skewed the narrative around investing in technology, highlighting the potential for lucrative returns in this sector.
