Nvidia Surges to $3.28 Trillion Market Value in 2024, Dominating AI-Driven Gains

• Nvidia's market capitalization soared by over $2 trillion in 2024, reaching $3.28 trillion.
• The chipmaker's rise is attributed to booming demand for AI-centric chips across sectors.
• Apple retains its title as the most valuable company, nearing a historic $4 trillion valuation.
• Major tech firms, including Microsoft, Alphabet, and Amazon, significantly boosted stock indices.
• Analysts predict continued growth for tech stocks, with a forecasted 25% gain in 2025.

Nvidia has emerged as the global leader in market capitalisation gains for 2024, riding the wave of explosive interest in artificial intelligence (AI). The chipmaker's value soared by over $2 trillion, reaching a staggering $3.28 trillion by year-end, securing its position as the world's second most valuable company after Apple. This remarkable growth was fueled by the increasing demand for Nvidia's AI-centric chips across various sectors, propelling its market cap from $1.2 trillion at the end of 2023, as reported by Reuters.

Apple maintained its position as the world's most valuable company, nearing a historic $4 trillion valuation, powered by investor enthusiasm for the company's AI enhancements aimed at revitalizing its iPhone sales. Microsoft secured the third spot with a market value of $3.1 trillion, followed by Alphabet and Amazon, each valued at approximately $2.3 trillion. When it comes to market cap increases, Nvidia led the way, followed by Apple, Amazon, Meta, and Alphabet in the top five.

The strong performance of these tech giants propelled major global stock indices in 2024, with the S&P 500 surging 23.3% and the Nasdaq climbing 28.6%. Despite looming concerns about US-China trade tensions and potential slowdowns in interest rate cuts, analysts remain optimistic about the continued strong performance of tech companies in 2025. According to India Times, Daniel Ives of Wedbush Securities predicts a 25% surge in tech stocks in 2025, attributing potential growth to a less regulatory environment, robust AI initiatives, and a stable foundation for Big Tech.

"We believe tech stocks will be robust in 2025 on the shoulders of the AI Revolution and $2 trillion+ of incremental AI cap-ex over the next 3 years," he stated.