Nvidia leads tech companies in record-breaking market achievements in 2024 as AI fuels growth

The transformative power of AI, coupled with extensive AI capital expenditure projected to exceed $2 trillion over the next three years, is expected to underpin continued growth and innovation within the industry.
Nvidia is set to manufacture AI supercomputers entirely in the US, marking a major shift in chip production and supply chain localisation.

Nvidia has emerged as the standout performer in the global market capitalisation race for 2024, driven by a surge in demand for its AI-centric chips. The company’s market value soared by over $2 trillion in just one year, reaching $3.28 trillion at the year’s close.

The remarkable growth positions Nvidia as the world’s second-most valuable publicly traded company, trailing only Apple, which remains at the top with a market value nearing $4 trillion. Apple’s rise was bolstered by investor confidence in its forthcoming AI advancements, designed to rejuvenate iPhone sales.

Other tech giants also saw significant gains, with Microsoft securing third place at $3.1 trillion, Alphabet Inc., and Amazon, each valued at around $2.3 trillion. These companies’ successes fueled a broader market rally, pushing the S&P 500 index up by 23.3% and the Nasdaq by 28.6% in 2024. The strong performance underscores the continued dominance of technology firms in shaping global financial markets.

Despite potential headwinds such as US-China trade tensions and uncertainties around US interest rate policies, analysts are optimistic about the sector’s trajectory in 2025. Daniel Ives of Wedbush projects a 25% gain in tech stocks, citing robust AI initiatives, reduced regulatory pressures, and stable foundations for Big Tech.

‘The AI Revolution will remain a key driver, with over $2 trillion in incremental investments expected over the next three years,’ Ives stated, signalling a bright future for the industry.