Top-Performing U.S. Stocks of the Year: Will the Rally Continue in 2025?

As 2024 wraps up, U.S. stocks have seen a robust rally, with the $S&P 500 Index (.SPX.US)$ climbing over 26% year-to-date. This surge was driven by the AI boom and strategic plays in rate cuts, Trump-related trades, and recession hedges, each taking the spotlight at different times.

AI advertising firm $Applovin (APP.US)$ led gains with an almost 750% rise. AI data analytics company $Palantir (PLTR.US)$ jumped more than 320%, while $Vistra Energy (VST.US)$, which powers data centers, climbed over 280%. Donald Trump's presidential win reignited interest in Bitcoin stocks, with $MicroStrategy (MSTR.US)$ soaring over 550%.

Industry giants also thrived. Among companies with market caps above $400 billion, $NVIDIA (NVDA.US)$ topped with gains over 180%. Streaming leader $Netflix (NFLX.US)$ rose 92%, while $Taiwan Semiconductor (TSM.US)$ advanced nearly 90%.

In the Mag7, $Meta Platforms (META.US)$, $Amazon (AMZN.US)$, and $Tesla (TSLA.US)$ posted significant gains of 79%, 71%, and 51%, respectively. Despite a slow start, Tesla surged nearly 70% in the last two months as Elon Musk's bet on Trump's victory paid off, boosting his wealth by over $100 billion, making him the first person with a net worth above $400 billion.

Retail giants $Walmart (WMT.US)$ and $Costco (COST.US)$ also performed well, rising 82% and 51%. Walmart saw monthly gains every month except April, marking its longest streak since 2002. By consistently lowering prices, Walmart maintained a 10% pricing advantage on food products, appealing to value-conscious shoppers. Walmart expanded its online grocery sector, boosting its e-commerce by about 25%. With around two-thirds of its products made in the U.S., Walmart faced minimal tariff exposure.

Over the past decade, Nvidia has been a consistent standout within the S&P 500, leading in 2015, 2016, 2020, 2021, and 2023, with annual returns exceeding 100% in all but 2015. In contrast, $Enphase Energy (ENPH.US)$, a top performer from 2018 to 2020, experienced a notable decline subsequently. Meanwhile, $Super Micro Computer (SMCI.US)$ ranked among the leaders in 2022 and 2023 but faced a tough 2024, with its stock plummeting over 85% from its peak.