Tech Stocks Shine Bright in 2024: A Dive into Nasdaq-100 Leaders
In 2024, tech stocks saw impressive gains, with major players like Nvidia (NASDAQ: NVDA) and Palantir Technologies (NASDAQ: PLTR) driving the S&P 500 (SNPINDEX: ^GSPC) upward. The overall market fared well too, with the tech-heavy Nasdaq-100 achieving a slight edge with a 25.9% increase, compared to the S&P 500’s 25% boost.
While two stocks outperformed their peers, a total of 34 stocks within the Nasdaq-100 experienced declines last year. This shows that despite some big winners, not all stocks performed well in a generally positive year.
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One advantage of investing in an index via an exchange-traded fund (ETF) is risk reduction. This strategy allows investors to enjoy potential gains from top performers while avoiding poor-performing stocks.
Could you have predicted which Nasdaq-100 stocks would dominate last year? Let’s look at the top five performers, their driving factors, and their likelihood of repeating success in 2025.
Tech Stocks Dominate the Nasdaq-100
The top five performers in the Nasdaq-100 for 2024, listed by total return, were:
- AppLovin (NASDAQ: APP)
- MicroStrategy (NASDAQ: MSTR)
- Palantir Technologies
- Nvidia
- Axon Enterprise (NASDAQ: AXON)
APP Total Return Level data by YCharts
Artificial intelligence (AI) significantly influenced these high returns. Nvidia gained attention as a leading company in generative AI, while AppLovin and Palantir attracted interest due to their creative AI implementations. MicroStrategy benefitted from rising Bitcoin values, whereas Axon, which produces safety gear for law enforcement, was the only non-service firm among the leaders.
Despite the success of AI stocks, they still face risks. Axon is generating excitement with new product introductions, whereas MicroStrategy’s fortunes heavily depend on the unpredictable Bitcoin market.
It’s worth noting that both AppLovin and Axon recently entered the Nasdaq-100, influencing overall market performance positively.
Should You Invest $1,000 in AppLovin?
Before purchasing stock in AppLovin, there are a few factors to weigh:
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Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool holds positions in and recommends AppLovin, Axon Enterprise, Bitcoin, Nvidia, and Palantir Technologies. For more details, please refer to the Motley Fool’s disclosure policy.
The views expressed in this article are solely those of the author and do not necessarily reflect the views of Nasdaq, Inc.
