Nvidia’s market value gets USD 2 trillion boost in 2024 on AI rally

Nvidia emerged as the biggest global gainer in market capitalization for 2024, driven by surging interest in artificial intelligence and the robust demand for its AI-centric chips across various industries.

The chipmaker’s market value increased by over USD 2 trillion last year, reaching USD 3.28 trillion at the close of 2024, making it the second-most valuable listed company in the world. Its market value was USD 1.2 trillion at the end of 2023.

Meanwhile, Apple continued to lead global companies in market value, nearing a historic USD 4 trillion valuation. This surge was fuelled by investor enthusiasm for the company’s anticipated AI enhancements, aimed at revitalizing sluggish iPhone sales.

At the end of 2024, Microsoft ranked third with a market value of USD 3.1 trillion, followed by Alphabet Inc. and Amazon, each valued at approximately USD 2.3 trillion.

These tech companies significantly boosted their respective global indexes in 2024, with the S&P 500 index surging 23.3% and the Nasdaq climbing 28.6%.

Despite the shares’ higher valuations, looming US-China tariff tensions, and potentially slower US interest rate cuts, analysts remain optimistic about the sustained strong performance by tech firms in 2025.

Daniel Ives of Wedbush predicts a 25% gain in tech stocks in 2025, attributing potential growth to a less regulatory environment under Donald Trump, forthcoming strong AI initiatives, and a stable foundation for Big Tech and Tesla in 2025 and beyond.

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

(Reporting By Patturaja Murugaboopathy and Gaurav Dogra in Bengaluru; Editing by Mrigank Dhaniwala)