Nvidia's Market Value Surges by $2 Trillion in 2024 Driven by AI Demand

Nvidia (NVDA.O) has become the largest gainer in global market capitalization for 2024, primarily fueled by a growing interest in artificial intelligence (AI) and the increasing demand for its AI-focused chips across numerous sectors.

In 2024, Nvidia's market value skyrocketed by over $2 trillion, reaching an impressive $3.28 trillion by year-end, which positioned the company as the second-most valuable publicly traded entity in the world. To put this in perspective, Nvidia's market value at the end of 2023 was only $1.2 trillion.

In this competitive landscape, Apple (AAPL.O) maintained its lead as the top company by market value, approaching a remarkable $4 trillion valuation. This growth can be attributed to strong investor enthusiasm regarding Apple's upcoming AI improvements, which are expected to invigorate its previously lagging iPhone sales.

As of the end of 2024, Microsoft (MSFT.O) held the third spot with a market capitalization of $3.1 trillion. This was followed closely by Alphabet Inc (GOOGL.O) and Amazon (AMZN.O), both valued at around $2.3 trillion.

The remarkable performances of these tech companies hugely impacted global indexes in 2024. The S&P 500 index (.SPX) surged by 23.3%, while the Nasdaq (.IXIC) saw an increase of 28.6%.

Despite the elevated share valuations, ongoing US-China tariff disputes and potential slowdowns in US interest rate cuts do pose some uncertainties. However, analysts are optimistic about robust performance from tech companies throughout 2025.

According to Daniel Ives from Wedbush, tech stocks are expected to gain by 25% in 2025. He indicates that this potential surge is driven by a less restrictive regulatory environment anticipated under Donald Trump, strong forthcoming AI initiatives, and a solid foundation for Big Tech and Tesla (TSLA.O) in the years ahead.

"We believe that tech stocks will thrive in 2025 due to the AI Revolution and over $2 trillion in additional AI capital expenditure projected over the next three years," Ives commented.

Nvidia, AI, Market