Tech stocks rallied in 2024, with powerhouse artificial intelligence (AI) stocks like Nvidia (NASDAQ: NVDA) and Palantir Technologies (NASDAQ: PLTR) bringing up the S&P 500 (SNPINDEX: ^GSPC). But it was a good year for the whole market, and the tech-heavy Nasdaq-100 only surpassed it by a hairbreadth -- a 25.9% gain versus 25% for the S&P 500.
Two of the tech index's components had massive upswings over the year, beating everything in the broader index. But those gains were balanced by ho-hum performance by some of its stocks, and a good 34 of the total lost some value last year.
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That's one of the biggest benefits of buying into an index through an exchange-traded fund (ETF): It reduces your risk of choosing any losers and provides access to the best gainers.
Would you have been able to predict the top five Nasdaq-100 stocks at the beginning of last year? Here they are, why they scored, and whether they can repeat in 2025.
Tech leads, of course
The top five leaders of the Nasdaq-100 in 2024 were, in order of total return:
- AppLovin (NASDAQ: APP)
- MicroStrategy (NASDAQ: MSTR)
- Palantir Technologies
- Nvidia
- Axon Enterprise (NASDAQ: AXON)
APP Total Return Level data by YCharts
As you might guess, AI was the major driver behind most of these gains. Nvidia was the poster stock for generative AI last year, but AppLovin and Palantir are drawing interest for their use of AI to create value for their users. MicroStrategy has been gaining on the increase in Bitcoin, and Axon is the only non-service company on the list, making safety gear for law enforcement.
The AI stocks still have a lot of life left in them as they continue to innovate, and Axon is gaining fans for its new product roll-outs. MicroStrategy presents the most risk on this list, since its movements rely on the volatile Bitcoin cryptocurrency.
Both AppLovin and Axon only recently entered the index, positively skewing what might have come in below the broader's market's gain.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
- Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $363,307!*
- Apple: if you invested $1,000 when we doubled down in 2008, you’d have $45,963!*
- Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $471,880!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of January 6, 2025
Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AppLovin, Axon Enterprise, Bitcoin, Nvidia, and Palantir Technologies. 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.
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