Top-Performing Stocks in the Nasdaq-100 for 2024

In 2024, technology stocks experienced a significant rally. Key players in the artificial intelligence (AI) sector, such as Nvidia and Palantir Technologies, played a crucial role in boosting the overall market, including the S&P 500. While the tech-heavy Nasdaq-100 outperformed the S&P 500 with a gain of 25.9%, the S&P 500 still saw a noteworthy increase of 25% this year.

Within the Nasdaq-100, two stocks saw extraordinary gains, significantly outshining their peers in the broader index. However, not all stocks fared well, as around 34 stocks within the Nasdaq-100 actually lost value over the year. This highlights a key advantage of investing in an index through an exchange-traded fund (ETF), as it minimizes the risks associated with individual stock investments while still offering access to high-performing stocks.

At the start of the year, could you have confidently predicted which stocks would lead the Nasdaq-100? Below are the top five performers of the year, along with an exploration of the factors that drove their success and insights into their potential for 2025.

Leading Stocks of the Year

The five best-performing stocks in the Nasdaq-100 for 2024 were:

1. AppLovin
2. MicroStrategy
3. Palantir Technologies
4. Nvidia
5. Axon Enterprise

AI technology was the primary catalyst for the remarkable performance of these stocks. Nvidia emerged as a leading player in generative AI, while both AppLovin and Palantir leveraged AI to create significant value for their users. Additionally, MicroStrategy's focus on Bitcoin has been a possible driver behind its stock's rise. Axon, the lone non-service provider on the list, specializes in safety gear for law enforcement and has been attracting more customers with new product launches.

There remains ample room for further growth in the AI sector, with companies like Nvidia continuing to innovate. Axon’s recent product introductions have also helped garner public interest. However, MicroStrategy represents the highest risk among these top performers, given its heavy reliance on the often-volatile Bitcoin market.

Both AppLovin and Axon are relatively new to the Nasdaq-100, which may have somewhat inflated their gains compared to the broader market performance.

Overall, 2024 proved to be a pivotal year for technology and AI stocks. Investors will be keen to watch how these companies evolve and whether they can maintain their position in 2025.

stocks, technology, performance