AI Rally Boosts Nvidia's Market Cap by $2 trillion

The dominance of tech giants in the global stock market surged in 2024, driven primarily by the rise of AI. According to a recent Reuters report, Nvidia emerged as the biggest market cap gainer globally, adding over $2 trillion in value throughout the year. The chipmaker closed 2024 with a market cap of $3.28 trillion, positioning itself as the second-most valuable company in the world, up from $1.2 trillion at the end of 2023.

Nvidia’s growth was fueled by its AI-centric chips, which have seen widespread adoption across various industries. The company’s role in powering the ongoing AI revolution has made it one of the most significant drivers of stock market gains in recent times.

Apple maintained its position as the most valuable company globally, nearing an unprecedented $4 trillion market valuation. The anticipation of new AI features aimed at reviving the company’s sluggish iPhone sales contributed to investor enthusiasm and its continued market dominance.

Microsoft ranked third in global market cap by the end of 2024, closing the year with a valuation of $3.1 trillion. It was followed by Alphabet and Amazon, both valued at approximately $2.3 trillion. Together, these tech giants contributed significantly to the performance of major indexes, with the S&P 500 rising 23.3% and the Nasdaq climbing 28.6% during the year.

Looking ahead to 2025, analysts remain optimistic about the tech sector’s potential. Daniel Ives from Wedbush predicts that tech stocks could see a further 25% increase in 2025. He attributes this growth to several factors, including a less regulatory environment under former President Donald Trump, the rollout of stronger AI initiatives, and a stable foundation for Big Tech companies and Tesla.

Despite concerns over U.S.-China tariff tensions and potentially slower interest rate cuts in the U.S., the outlook for the tech sector remains strong. AI continues to be the central growth driver, with major players investing heavily in AI-based advancements to sustain their momentum into the coming years.

This latest shift in global market caps underscores how AI is reshaping industries and bolstering the stock performance of companies leading the charge in technological innovation. Nvidia, Apple, Microsoft, Alphabet, and Amazon are well-positioned to continue driving market gains as they leverage AI to revolutionize their products and services.