Nvidia has emerged as the global leader in market capitalisation gains for 2024, riding the wave of explosive interest in artificial intelligence (AI). The chipmaker’s value soared by over $2 trillion, reaching a staggering $3.28 trillion by year-end, securing its position as the world’s second most valuable company after Apple.
This growth, fueled by the increasing demand for Nvidia’s AI-centric chips across various sectors, propelled its market cap from $1.2 trillion at the end of 2023, adding $2 trillion by 2024-end, news agency Reuters reported.
Apple maintained its position as the world’s most valuable company, nearing a historic $4 trillion valuation – powered by investors cheering progress in the company’s AI enhancements to boost iPhone sales. Microsoft secured the third spot with a market value of $3.1 trillion, followed by Alphabet and Amazon, each valued at approximately $2.3 trillion.
However, when it comes to adding value to market cap, Nvidia surged the maximum followed by Apple, Amazon, Facebook-parent company Meta and Google-parent Alphabet completing the top 5 list.
These tech giants played a crucial role in driving the impressive gains of major global indexes in 2024. The S&P 500 surged by 23.3%, while the Nasdaq climbed 28.6%, reflecting the robust performance of the tech sector.
Despite concerns about US-China trade tensions and potential slowdowns in US interest rate cuts, analysts remain optimistic about the continued strong performance of tech companies in 2025, the report added.
Daniel Ives of Wedbush Securities predicts a 25% surge in tech stocks in 2025, citing a less regulatory environment under the new US administration, robust AI initiatives, and a stable foundation for Big Tech.
“We believe 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 3 years,” he was quoted as saying.
