Sector performance data from financial platforms like Bloomberg or Yahoo Finance

Nvidia's Market Value Surges to $3.28 Trillion in 2024, Second-Most Valuable as AI Demand Boosts S&P 500 and Nasdaq

Jan 3, 2025, 03:59 AM

Nvidia Corp. emerged as the biggest global gainer in market capitalization for 2024, with its market value increasing by over $2 trillion, reaching $3.28 trillion by the end of the year from $1.2 trillion in 2023. This surge was driven by a robust demand for Nvidia's AI-centric chips across various industries, fueled by a growing interest in artificial intelligence. Nvidia's performance positioned it as the second-most valuable listed company worldwide, behind Apple Inc., which neared a historic $4 trillion valuation, driven by investor enthusiasm for anticipated AI enhancements aimed at revitalizing iPhone sales. Other tech giants like Microsoft, Alphabet Inc., and Amazon also saw significant market value increases, contributing to strong performances in global indexes such as the S&P 500, which surged 23.3%, and the Nasdaq, which climbed 28.6%. Despite higher valuations and potential challenges such as U.S.-China tariff tensions and slower U.S. interest rate cuts, analysts remain optimistic about tech firms' performance in 2025. Daniel Ives of Wedbush predicts a 25% gain in tech stocks, attributing this to a less regulatory environment under Donald Trump, strong AI initiatives, and a stable foundation for Big Tech and Tesla, with over $2 trillion in incremental AI capital expenditure expected over the next three years.