Top-Performing Stocks in the Nasdaq-100 for 2024

In 2024, tech stocks saw impressive gains, led by strong performance from artificial intelligence (AI) companies such as Nvidia and Palantir Technologies. This rally contributed positively to the S&P 500, which recorded a 25% gain. Meanwhile, the tech-centric Nasdaq-100 slightly outperformed with a gain of 25.9%.

Within the Nasdaq-100, some stocks soared while others lagged behind. Despite having two standout companies that outperformed the overall market, 34 stocks in the index experienced declines in 2024.

This fluctuation emphasizes one of the advantages of investing in an index through an exchange-traded fund (ETF). Such investments can mitigate the risk of picking individual stocks, allowing investors to benefit from the best-performing ones.

Leading the Way

The top five performers in the Nasdaq-100 in 2024, ranked by total returns, were:

1. AppLovin
2. MicroStrategy
3. Palantir Technologies
4. Nvidia
5. Axon Enterprise

The surge in these stocks can be attributed largely to the AI boom. Nvidia notably emerged as a leading name in generative AI, while AppLovin and Palantir attracted attention for integrating AI to enhance user value. MicroStrategy saw gains correlating with the rising popularity of Bitcoin, and Axon, known for manufacturing safety products for law enforcement, completed the list.

The potential for growth remains high for AI-related stocks, as they continue to push boundaries in innovation. Although Axon is gaining traction with new products, MicroStrategy's reliance on the volatile Bitcoin market introduces a level of risk.

Both AppLovin and Axon are relatively new entrants to the index, which skew their performance positively against the broader market gain.

Disclaimer: No author positions are held in the stocks mentioned. The author or the writers may have positions in some of the mentioned companies.

Stocks, Technology, AI