San Francisco, California – Nvidia (NVDA) and its partner, Super Micro Computer (SMCI), have been standout performers in the S&P 500 in 2024. While Nvidia has seen its stock price rise by 90.4%, Super Micro Computer has experienced a remarkable gain of 242.2% in the new year. Despite these impressive numbers, Super Micro Computer stole the spotlight by surpassing Nvidia as the top performer in the S&P 500.
Joining the S&P 500 alongside Super Micro Computer are new components Constellation Energy (CEG), Meta Platforms (META), and Deckers Outdoor (DECK). These companies round out the top five performers in the S&P 500 for 2024.
Nvidia, Super Micro Computer, and Meta Platforms are all considered plays in artificial intelligence (AI). Even Constellation Energy, with its focus on energy solutions, plays a role in the AI sector in powering data centers that run AI chips and servers.
On the flip side, Tesla (TSLA) and Boeing (BA) have struggled in 2024, being the biggest losers in the S&P 500. Despite some companies facing challenges, the overall S&P 500 has seen a solid 9.7% increase in 2024, hitting record highs.
Super Micro Computer’s exponential growth has been driven by its AI server manufacturing business, which services chips for AI technologies from companies like Nvidia. On the other hand, Nvidia’s stock has soared with a 90.4% increase, marked by a strong performance in the market.
Meanwhile, Constellation Energy stock has surged by 52.5% in 2024 following robust Q4 results and promising EPS guidance for the year. Despite being an electric utility company, Constellation Energy is indirectly involved in the AI sector due to its contribution to power requirements for data centers.
Meta Platforms has seen a 44% increase in stock value in 2024, driven by a strong financial performance and strategic moves to enhance shareholder value, including a significant buyback and the introduction of dividends. On the other hand, Deckers Outdoor has seen a 38% increase in stock value this year, driven by positive market sentiment and growth in its product lines.
In conclusion, the S&P 500 in 2024 has seen a mix of success stories and challenges among its top performers and losers. The tech sector, especially companies involved in AI, has shown significant growth, while traditional industries like aviation have faced setbacks. The market remains dynamic, with companies navigating through various opportunities and obstacles in the ever-changing business landscape.