Nvidia has become the biggest gainer in global market capitalization for 2024, experiencing an unprecedented $2 trillion boost thanks to the explosive growth of artificial intelligence (AI) and the growing demand for its AI-focused chips across various sectors.
The chipmaker’s market value skyrocketed from $1.2 trillion at the end of 2023 to an impressive $3.28 trillion by the close of 2024, securing its position as the second-most valuable company globally. Despite this surge, Apple remained the leader, approaching a historic $4 trillion market valuation, driven by investor excitement over the company’s anticipated AI enhancements that aim to revive stagnant iPhone sales.
Tech Giants’ Rising Valuations
Microsoft secured the third spot with a market valuation of $3.1 trillion at the close of 2024, followed by Alphabet and Amazon, both valued at approximately $2.3 trillion. These tech giants played a major role in the performance of global stock indexes in 2024, with the S&P 500 index climbing 23.3% and the Nasdaq soaring 28.6%.
Optimism for 2025
Despite potential risks such as ongoing U.S.-China tariff disputes and the possibility of slower interest rate cuts in the U.S., analysts remain confident about the tech sector’s continued strong performance into 2025. Daniel Ives of Wedbush projects a 25% increase in tech stocks next year, fueled by favorable conditions under a potentially less regulatory environment under President Trump, along with the sustained AI revolution and upcoming AI investments.
“We anticipate robust tech stock performance in 2025, driven by the AI Revolution and an expected $2 trillion in AI-related capital expenditures over the next three years,” said Ives.