Nvidia has emerged as the largest gainer in global market capitalisation for the year 2024, capturing significant attention due to an escalating interest in artificial intelligence (AI) technologies. This momentum was largely fuelled by a strong demand for Nvidia's AI-centric chips, which are increasingly crucial across diverse sectors. By the end of 2024, the chipmaker’s market value soared to $3.28 trillion, an increase of over $2 trillion from the previous year, establishing it as the second-most valuable publicly listed company worldwide. Last year, Nvidia's market valuation was reported at $1.2 trillion.

In comparison, Apple maintained its status as the foremost company in terms of market value, approaching a historic valuation of $4 trillion. Investor excitement regarding Apple's anticipated AI enhancements, which aim to invigorate its iPhone sales, has played a pivotal role in this growth.

Microsoft secured the third position among the world's largest companies, with a market capitalisation of $3.1 trillion at 2024's close. Alphabet Inc and Amazon followed suit, each holding market values of about $2.3 trillion. The performance of these tech giants contributed significantly to global economic indicators, with the S&P 500 index increasing by 23.3% and the Nasdaq seeing an impressive climb of 28.6%.

Despite the elevated stock valuations, concerns persist regarding potential U.S.-China tariff disputes and the prospect of slower interest rate cuts in the U.S. However, analysts express optimism regarding the continued success of tech firms into 2025.

In an analysis published by Wedbush, Daniel Ives predicted a 25% increase in tech stocks for 2025. He attributed this to a less regulatory environment that could emerge under a possible future Trump administration, strong AI initiatives in the pipeline, and a solid foundation for major technology enterprises and Tesla. “We believe tech stocks will be robust in 2025 on the shoulders of the AI Revolution and $2 trillion+ of incremental AI cap-ex over the next 3 years,” Ives remarked.

Overall, the convergence of AI advancements with strategic corporate investments suggests that the technology sector might continue on an upward trajectory in the months and years to come.

Source: Noah Wire Services