The S&P 500 index is up 25% year to date, and it's no surprise to see several of the biggest gainers in 2024 were companies benefiting from the growth in artificial intelligence (AI). Here are the top five performers through the market close on Dec. 23, 2024.
Data center suppliers dominated
Palantir Technologies (NASDAQ: PLTR) shares have had an incredible run since bottoming out with the broader market sell-off in 2022. After the stock nearly tripled in 2023, accelerating revenue growth for the company's AI software sent the stock up 370% year to date.
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Vistra (NYSE: VST) stock is up 265%. The power generation company reported strong financial results, with revenue and net income up 13% and 38%, respectively, through the first three quarters of the year. Vistra is expected to benefit from the buildout of power-hungry data centers, which could result in higher power prices.
Nvidia (NASDAQ: NVDA) shares were up 182%. The AI chip leader reported a 94% year-over-year increase in revenue in the most recent quarter. The insatiable demand for advanced AI chips is expected to deliver another solid year of growth in calendar 2025.
GE Vernova (NYSE: GEV) shares are up 146% following its spin-off from General Electric in April. Investors are seeing great potential for the company to benefit from what management sees as a "super cycle" in power grid infrastructure, driven by growing power needs, energy security, and investment.
The fifth best-performing stock was Axon Enterprise (NASDAQ: AXON), rising 141% year to date. The law enforcement technology company delivered its 11th consecutive quarter of growth above 25%, with revenue up 36% year over year in Q3, driven by demand for its Taser 10 and related products.
The top-five list will likely look different next year. Some momentum stocks are now trading at expensive valuations that could limit their gains in 2025. All of the top gainers for 2024 were underappreciated; that, in part, led to their stellar run. The stocks that are currently trading at reasonable valuations ahead of improving financial results could help you find tomorrow's winners.
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*Stock Advisor returns as of December 23, 2024
John Ballard has positions in Nvidia. The Motley Fool has positions in and recommends Axon Enterprise, Nvidia, and Palantir Technologies. The Motley Fool recommends GE Aerospace. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
