Nvidia the biggest winner in 2024 with $2-trillion rally

Bengaluru — Nvidia emerged as the biggest global gainer in market capitalisation for 2024, driven by surging interest in artificial intelligence (AI) and robust demand for its AI-centric chips.

The chipmaker’s market value increased by over $2-trillion last year, reaching $3.28-trillion at the close of 2024, making it the second most valuable listed company in the world. Its market value was $1.2-trillion at the end of 2023.

Apple continued to lead global companies in market value, nearing a $4-trillion valuation. This surge was fuelled by investor enthusiasm for the company’s anticipated AI enhancements, aimed at revitalising sluggish iPhone sales.

At the end of 2024, Microsoft ranked third with a market value of $3.1-trillion, followed by Alphabet and Amazon, each valued at approximately $2.3-trillion.

These tech companies significantly boosted global indices in 2024, with the S&P 500 index surging 23.3% and the Nasdaq climbing 28.6%.

Despite the shares’ higher valuations, looming US-Chinese tariff tensions, and potentially slower US interest rate cuts, analysts remain optimistic about the sustained strong performance by tech firms in 2025.

Daniel Ives of Wedbush predicts a 25% gain in tech stocks in 2025, attributing potential growth to a less regulated environment under Donald Trump, forthcoming strong AI initiatives, and a stable foundation for big tech and Tesla in 2025 and beyond. “We believe tech stocks will be robust in 2025 on the shoulders of the AI revolution and $2-trillion of incremental AI capex over the next three years,” he said.

Reuters