2024's Top Performing Sector: Tech Stocks Lead the Pack
As of December 12, 2024, the three major U.S. stock indices have repeatedly hit historical highs throughout the year. The $Dow Jones Industrial Average (.DJI.US)$ exceeded the 45,000-point mark, the $S&P 500 Index (.SPX.US)$ hit 6,000 points, and more excitingly, the $Nasdaq Composite Index (.IXIC.US)$ topped 20,000 for the first time on Wednesday.
Amid the artificial intelligence frenzy and expectations of Federal Reserve rate cuts, along with the arrival of the 'Trump 2.0' era, big tech stocks have continued to surge, driving U.S. stocks to skyrocket.
As of December 11, all 11 major sectors of the U.S. stock market closed higher, led by a 65% surge in Information Technology, with Utilities close behind, rising by 48.4%.
In 2024, the AI myth continues to unfold. Besides semiconductor stocks, utility stocks and AI application stocks also emerged as big winners in this AI wave.
U.S. stock AI advertising marketing leader $Applovin (APP.US)$ has attracted global attention, with a stock price increase of over 700% since the beginning of the year, ranking at the top of the tech stock gainers, outpacing $NVIDIA (NVDA.US)$. Additionally, data analytics firm $Palantir (PLTR.US)$ has already climbed more than 310% this year, Palantir is also likely to be added to the $NASDAQ 100 Index (.NDX.US)$ during its annual reconstitution.
The chip leader $NVIDIA (NVDA.US)$ is still the darling of Wall Street in 2024. After doubling its stock price in 2023, it has risen by more than 170% this year, with its market value surpassing $3 trillion, briefly overtaking Apple to become the most valuable company in the world. $Taiwan Semiconductor (TSM.US)$ and $Arm Holdings (ARM.US)$ have both surged by over 80%.
Additionally, the crypto-related stocks $MicroStrategy (MSTR.US)$ has risen nearly 500% this year as Bitcoin prices broke through the $100,000 mark. The social media giant $Reddit (RDDT.US)$ saw its stock increase by over 350% this year, with Morgan Stanley recently raising its target price significantly to $200.
Amid the generative artificial intelligence (AI) gold rush, utility and power companies are also experiencing a strong surge. McKinsey’s forecast predicts a significant surge in data center power consumption in the U.S., from 17 gigawatts (GW) in 2022 to 35 GW in 2030. This growth is attributed in part to the increasing use of higher-power chips for demanding workloads such as AI.
In this context, U.S. utility stocks are riding the wave of AI. Power giant $Vistra Energy (VST.US)$ has seen a cumulative increase of up to 270%, and $Talen Energy (TLN.US)$ has also more than doubled in value. Global energy giant $GE Vernova (GEV.US)$ and $Constellation Energy (CEG.US)$ , the largest nuclear power plant operator in the U.S., have both seen increases of over 100%.
Source: Yahoo Finance
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