Nvidia's Market Value Soars by $2 Trillion in 2024 Amid AI Surge

Nvidia (NVDA.O) has made headlines as the largest global gainer in market capitalization for the year 2024. This remarkable achievement is attributed to the soaring interest in artificial intelligence and the high demand for Nvidia's AI-focused chips across various sectors.

At the end of 2024, Nvidia's market value skyrocketed by over $2 trillion, reaching an impressive total of $3.28 trillion. This significant increase places the company as the second-most valuable publicly listed company worldwide. In stark contrast, Nvidia's market value stood at $1.2 trillion at the close of 2023.

In the tech landscape, Apple (AAPL.O) maintained its status as the leader in market value, approaching a historic valuation of $4 trillion. This surge in Apple's valuation can be attributed to investor excitement surrounding the company's upcoming AI enhancements, which are designed to boost slowing iPhone sales.

As of the end of 2024, Microsoft (MSFT.O) held the third position with a market value of $3.1 trillion, followed closely by Alphabet Inc (GOOGL.O) and Amazon (AMZN.O), with valuations around $2.3 trillion each.

The performance of these technology giants significantly impacted their respective global indexes in 2024. The S&P 500 index (.SPX) experienced a noticeable rise of 23.3 percent, while the Nasdaq (.IXIC) climbed by 28.6 percent.

Despite the higher valuations of these stocks, there are concerns regarding ongoing U.S.-China tariff tensions and the potential for slower interest rate cuts in the U.S. However, analysts remain upbeat about the prospects for tech companies in 2025.

Daniel Ives of Wedbush has projected a potential 25 percent gain in tech stocks for 2025. He attributes this anticipated growth to a more favorable regulatory environment, strong AI initiatives, and a solid foundation for major tech firms and Tesla (TSLA.O) in the coming years.

"We believe that tech stocks will thrive in 2025, propelled by the ongoing AI revolution and the anticipated $2 trillion plus in incremental AI capital expenditures over the next three years," Ives stated.

Nvidia, AI, Stocks