Nvidia surged to the forefront of market capitalization gains in 2024, with its value climbing over $2 trillion, driven by unprecedented demand for its AI-focused chips. The company’s market value closed at $3.28 trillion, a stark rise from $1.2 trillion at the end of 2023, securing its position as the second-most valuable listed company worldwide.
Apple maintained its top spot, nearing a $4 trillion valuation as investors rallied around its anticipated AI advancements. Microsoft followed closely with a $3.1 trillion market value, while Alphabet and Amazon trailed at approximately $2.3 trillion each.
The explosive growth in these companies significantly impacted global indexes in 2024, with the S&P 500 climbing 23.3% and the Nasdaq surging 28.6%. Nvidia’s rise exemplified the broader AI-driven enthusiasm sweeping through the tech sector, boosting both valuations and investor confidence.
Analysts project continued growth for tech stocks in 2025. Daniel Ives of Wedbush predicts a 25% increase in tech shares, fueled by a favorable regulatory environment, ongoing AI advancements, and steady performances from Big Tech and Tesla. “Tech stocks will be robust in 2025 on the shoulders of the AI revolution and $2 trillion+ of incremental AI cap-ex over the next three years,” Ives stated.
Despite these optimistic projections, factors like U.S.-China trade tensions and potential slowdowns in U.S. interest rate cuts remain on the horizon. However, with AI investments showing no signs of slowing, Nvidia and its tech counterparts are poised for another strong year ahead.
