2024: A Standout Year for the Markets
2024 emerged as one of the better years for the financial markets, with the S&P 500 posting a robust 25% gain and the Nasdaq Composite, which tracks nearly all Nasdaq-listed companies, surging by 32%.
Over 55% of the top 30 companies by growth in the Nasdaq Composite were from the biotech and technology sectors, showing the market’s strong focus on innovation and technological advancement. Similarly, in the S&P 500, technology companies dominated, comprising about 30% of the top-performing companies, followed by utilities and energy sectors. The overarching theme across these sectors was artificial intelligence (AI), which played a massive role in driving the market.
Winners and Losers
Despite the market’s overall strength, not all sectors thrived. Among the worst-performing stocks were companies spanning industries from healthcare like Moderna to semiconductors, including Intel. The common thread among these underperformers was a lack of competitiveness in their products, declining sales, and negative investor sentiment.
Top Performers in the S&P 500
Nvidia (NVDA): A Market Favourite in 2024
Nvidia solidified its position as investors’ favorite stock in 2024, achieving trading volumes greater than the next three stocks combined, including Tesla. Despite cooling off during the second part of the year, the remarkable 170% gain secured its position as the third-best performing stock in the S&P 500.
The company’s fundamentals continue to inspire confidence, supported by sustained interest in AI. What is important to note is that, during recent market sell-offs, Nvidia showed resilience, reflecting investor confidence. Anticipation is also building for the launch of Nvidia’s new server platform, slated for March 2025, which has generated significant industry interest.
Currently trading at 24 times forward price-to-earnings, Nvidia’s valuation remains highly attractive. The company’s ongoing advancements in robotics, particularly its push toward developing humanoid robots, exemplify its commitment to innovation. These developments align with the broader trend of AI expanding into new sectors, driving increased demand for Nvidia’s products.
Looking ahead, the planned release of the Ruby platform—an evolution of the Blackwell platform—is expected to further strengthen Nvidia’s position in 2025. While the 170% growth seen in 2024 is unlikely to be repeated, the company is well-positioned to outperform the market given its steady pipeline and strong investor sentiment.
Vistra Corp: Powering the AI Era
Vistra Corp recorded a massive 250% increase in its stock price in 2024, marking its inclusion in the S&P 500 index. The company’s growth has been fueled by the AI boom and the rising demand for energy to power data centers. Vistra is well-positioned in the market, offering energy solutions that range from nuclear and fossil fuels to solar power, making it a diversified player in the industry.
Tech giants such as Microsoft, Amazon, and Meta are increasingly turning to nuclear energy to power their data centers, a trend that benefits Vistra given its operations in deregulated markets like Texas. Despite its strong performance, Vistra faces potential risks from ESG (Environmental, Social, and Governance) regulations due to its reliance on coal power. However, the regulatory outlook remains uncertain under the current administration.
Palantir Technologies: Leading the AI Revolution
Topping the S&P 500 with an impressive 340% gain, Palantir Technologies emerged as a standout performer in 2024. Initially slow to capitalise on the AI boom, Palantir eventually leveraged its expertise in big data analysis to support organisational decision-making. Its collaboration with the U.S. government and private organisations solidified its reputation as a leader in the sector.
The company’s AI-driven solutions have attracted significant investment, with better-than-expected earnings propelling its rally. Additionally, the post-election period has been favourable for Palantir, with one of its co-founders mentoring Vice President Vance. Of particular interest are ongoing negotiations with major tech players, including SpaceX, for potential military sector collaborations. These partnerships aim to position Palantir as a competitor to established defence contractors like Lockheed Martin and Raytheon, targeting a share of the $850 billion defence budget.
Quantum Computing: A Revolutionary Breakthrough
The NASDAQ Composite, which encompasses a broader spectrum of listed companies compared to the NASDAQ 100, highlighted several exceptional performers in 2024. Among them, Quantum Computing stood out with a massive 1,700% increase in share price over the last two months of the year.
This surge coincided with Alphabet’s groundbreaking announcement of a quantum computing chip capable of solving problems in 10 minutes that would otherwise take a conventional computer over 13 billion years. The ensuing investor interest propelled Quantum Computing to prominence, particularly as it collaborates with NASA on cutting-edge quantum technology. Furthermore, as quantum computing evolves, the demand for advanced cryptographic protections is expected to grow, positioning Quantum Computing to meet this need.
Bright Mind Biosciences: Advancing Medical Breakthroughs
Bright Mind Biosciences achieved a remarkable 2,400% rise in share price in 2024, although it remains approximately 50% below its peak due to a capital-raising share issuance. The company focuses on developing treatments for depression, neurological conditions like epilepsy, and analgesics for pain relief. Its latest drug has garnered significant attention for demonstrating pain-relief efficacy comparable to morphine.
Additionally, a short squeeze, fueled by investors covering their short positions, added upward pressure to the stock earlier in the year. Bright Mind Biosciences’s innovations and market dynamics make it a standout in the biotechnology sector.
GeneDX: Transforming Genomic Medicine
Leading the pack with a phenomenal 2,700% increase in share price is GeneDX, a genome sequencing company revolutionising early disease diagnosis, particularly in pediatric cases. The company’s technology significantly reduces the diagnostic timeline for complex diseases, offering results in days or weeks compared to the years traditional methods often require.
GeneDX is also on track to achieve profitability within the next two years, with its advancements closely monitored by analysts and industry stakeholders. The promise of this technology, coupled with a strong growth trajectory, cements GeneDX’s status as a top performer.
Conclusion
The exceptional performances of companies like Nvidia, Quantum Computing, Bright Mind Biosciences, and GeneDX underscore the dynamic nature of the market in 2024 and by the look of things, 2025 is likely going to be even more volatile.
These materials are for information purposes only. They do not post a buy or sell recommendation for any of the financial instruments herein analysed.
Deltastock AD assumes no responsibility for errors, inaccuracies or omissions in these materials, nor shall it be liable for damages arising out of any person’s reliance upon the information on this page.
56% of retail investor accounts lose money when trading CFDs with this provider.
