As the new year begins, it’s a perfect moment to reflect on the highs and lows of the previous year.

With 2025 now here, let’s revisit 2024’s notable moments and explore what the future may hold.

Where to invest $1,000 today? Our analyst team has identified the 10 best stocks for your consideration. See the 10 stocks »

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2024’s Stellar Performers

Unquestionably, one of the standout trends in 2024 was the surge of artificial intelligence (AI) stocks.

Nvidia(NASDAQ: NVDA), a leader in the AI space, competed fiercely with Apple for the title of the world’s largest public company by market capitalization. Currently, Nvidia has reclaimed the top position, narrowly surpassing Apple.

Additionally, many more AI stocks have enjoyed substantial increases over the past year. Palantir Technologies saw its stock price soar an impressive 341%, while SoundHound AI‘s stock skyrocketed by an astonishing 836%.

PLTR data by YCharts

The success wasn’t limited to pure AI firms; big tech overall had a remarkable year.

Meta Platforms, Amazon (NASDAQ: AMZN), Alphabet, and Apple all outperformed the S&P 500 in 2024, with only Microsoft trailing behind.

META Total Return Level data by YCharts

In summary, the continuing growth of AI technologies made the tech sector a wise investment choice for 2024.

The Downside of 2024

Contrastingly, budget retailers and convenience pharmacies struggled significantly in 2024.

Walgreens Boots Alliance, Dollar Tree, Dollar General, and CVS Health were among the hardest-hit stocks, each declining by at least 40% over the year, with Walgreens notably losing over 60% of its value.

WBA Total Return Level data by YCharts

These companies were significantly impacted by inflation that led consumers to reduce spending. For pharmacy retailers, the decline in drug reimbursement rates, increased theft, and heightened competition resulted in stock price declines.

Just behind the budget retailers were some healthcare stocks, particularly Moderna and Biogen. Moderna faced a long-term impact as demand for COVID-19 vaccines waned, causing its shares to drop by over 57%. Biogen experienced a 41% decrease due to various issues, including slowing sales of its key Alzheimer’s drug and concerns regarding a weak drug pipeline.

In essence, budget retailers, convenience pharmacies, and certain drug companies were the prominent losers in 2024.

Top Picks for 2025

As has been the trend for several years, I continue to favor growth stocks over value stocks, particularly within the tech sector.

Looking at the tech landscape as we enter 2025, three stocks stand out as long-term investments:

Nvidia remains a top choice due to its prominent role in the ongoing AI boom. While…
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Nvidia, Amazon, and Tesla: Key Players Unfazed as 2025 Approaches

Nvidia’s dominance in the AI chip market appears secure for now, with no indications of its lead slipping. The company’s designs are considered the best, resulting in high demand for its offerings. Nvidia continues to see rapid growth in both revenue and profits, ensuring a strong outlook as 2025 begins.

Turning to Amazon, it’s crucial to recognize the company’s multifaceted nature. Many investors, including myself, perceive Amazon as a conglomerate rather than just an e-commerce platform. With Amazon Web Services (AWS) achieving over $100 billion in annual revenue, it stands as a significant entity on its own. Additionally, in the e-commerce sector, Amazon is enhancing profitability through innovations like robotics, which efficiently reduce costs and expedite delivery for customers.

Lastly, consider Tesla’s evolving role. While automotive sales remain a major part of its revenue, the company is increasingly venturing into robotics. The advancements in its autonomous driving software, Full Self-Driving (FSD), could unlock new opportunities, including ride-sharing and autonomous deliveries. Furthermore, Tesla’s Optimus robot might pave the way for additional revenue streams. Overall, Tesla appears well-positioned for a bright future as we approach 2025, making it a solid stock choice for long-term investors.

A Second Chance to Seize Potential Opportunities

Have you ever felt like you missed out on investing in successful stocks? Here’s your chance to take action.

Occasionally, our analysts issue a “Double Down” stock recommendation for companies poised for growth. If you’re worried about missing your opportunity, it’s best to act now, before it’s too late. The following figures illustrate potential returns:

• Nvidia: Invest $1,000 when we recommended it in 2009, and you’d have $363,307!*
• Apple: Invest $1,000 when we recommended it in 2008, and you’d have $45,963!*
• Netflix: Invest $1,000 when we recommended it in 2004, and you’d have $471,880!*

Presently, we have “Double Down” alerts for three exceptional companies, and opportunities like this may not arise again soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of January 6, 2025

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Jake Lerch has positions in Alphabet, Amazon, Nvidia, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, Palantir Technologies, and Tesla. The Motley Fool recommends Biogen, CVS Health, and Moderna and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.