Nvidia Leads the AI Revolution

Nvidia has emerged as the biggest global gainer in market capitalization for 2024, with a staggering increase of over $2 trillion, now valued at $3.28 trillion. This increase is largely attributed to the booming interest in artificial intelligence and the robust demand for its AI-centric chips across various industries.

Market Overview

At the end of 2024, Nvidia’s market value positioned it as the second-most valuable listed company globally, trailing only Apple, which is approaching a historic $4 trillion valuation. Apple’s growth is fueled by investor confidence in its AI capabilities aimed at revitalizing sales. Following Nvidia and Apple, Microsoft ranks third with a market value of $3.1 trillion, while Alphabet Inc. and Amazon are valued at approximately $2.3 trillion each.

Impact on Global Indexes

The notable surge in these tech companies has positively impacted global indexes, with the S&P 500 index climbing by 23.3% and the Nasdaq gaining 28.6% in 2024. Despite the risks posed by U.S.-China tariff tensions and potential slowdowns in interest rate cuts, analysts express optimism for 2025. Daniel Ives of Wedbush forecasts a 25% gain in tech stocks, attributing this to a favorable regulatory environment and expected strong AI initiatives.

“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,” Ives remarked.

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