Nvidia's $2 Trillion Market Value Surge in 2024

Nvidia (NVDA.O) has made headlines as it emerged as the leader in global market capitalization gains for 2024. This rise can largely be attributed to the skyrocketing interest in artificial intelligence (AI) and the increasing demand for its AI-focused chips across various sectors.

Throughout the year, Nvidia's market value has surged dramatically, increasing by more than $2 trillion. By the end of 2024, Nvidia's market value reached an impressive $3.28 trillion, positioning it as the second-most valuable publicly traded company in the world, following Apple. To put this in perspective, Nvidia's market value stood at only $1.2 trillion at the close of 2023.

Currently, Apple (AAPL.O) retains its status as the foremost company globally in terms of market value, inching closer to a historic $4 trillion valuation. This remarkable growth has been propelled by investor enthusiasm surrounding Apple's anticipated advancements in AI, which are expected to revitalize its sluggish iPhone sales.

In the market rankings as of the end of 2024, Microsoft (MSFT.O) has taken the third spot with a market value of $3.1 trillion. Alphabet Inc (GOOGL.O) and Amazon (AMZN.O) follow closely behind, each valued at around $2.3 trillion. The significant advances made by these tech giants have played a pivotal role in propelling their respective global indexes in 2024. For instance, the S&P 500 index (.SPX) experienced a significant rise of 23.3 percent, while the Nasdaq (.IXIC) enjoyed an impressive climb of 28.6 percent.

Even with such high valuations for these shares, challenges such as ongoing US-China tariff tensions and slower potential US interest rate cuts loom on the horizon. Despite these factors, analysts maintain a positive outlook toward sustained strong performance for tech companies into 2025.

Daniel Ives from Wedbush has expressed optimism regarding technology stocks, predicting a potential gain of 25 percent in 2025. This growth is attributed to a possibly more favorable regulatory environment under Donald Trump, strong upcoming AI initiatives, and a stable foundation for major tech firms and Tesla (TSLA.O) moving forward.

Ives stated, "We believe tech stocks will be robust in 2025 on the shoulders of the AI Revolution and over $2 trillion of incremental AI capital expenditure expected in the next three years."

Nvidia, AI, Market