Top 5 Stocks Driving the S&P 500's 2024 Performance

The S&P 500 index has surged 25% year to date, with several companies benefiting from the growth in artificial intelligence (AI) and data centers. Here are the top five performers through the market close on Dec. 23, 2024, and the factors driving their exceptional stock performance.

1. Palantir Technologies (PLTR):
- *AI Software*: Palantir's AI software, which uses machine learning and data analytics, has seen accelerating revenue growth. This has sent the stock up 370% year to date.
- *Expansion into Private Sector*: Palantir's expansion beyond government contracts to the private sector has also contributed to its success. The company's third-quarter results showed a 54% increase in U.S. commercial revenue.



2. Nvidia (NVDA):
- *AI Chip Leader*: Nvidia's graphic processing units (GPUs) are a critical component in AI-related data centers. The company's undisputed leadership position has driven its stock up 182% in 2024.
- *Insatiable Demand for AI Chips*: The insatiable demand for advanced AI chips is expected to deliver another solid year of growth in calendar 2025.



3. Vistra (VST):
- *Power Generation*: Vistra, a power generation company, is expected to benefit from the buildout of power-hungry data centers. This could result in higher power prices, driving the stock up 265% in 2024.
- *Strong Financial Results*: Vistra reported strong financial results, with revenue and net income up 13% and 38%, respectively, through the first three quarters of the year.



4. GE Vernova (GEV):
- *Renewable and Natural Gas Energy*: GE Vernova's management has focused on growing its renewable and natural gas energy businesses. The company's 146% stock gain following its spin-off from General Electric in April reflects the success of this strategy.
- *Investors' Optimism*: Investors have recognized the company's potential to benefit from the growing demand for renewable energy.



5. Axon Enterprise (AXON):
- *Law Enforcement Technology*: Axon Enterprise, a law enforcement technology company, has seen its stock rise 141% year to date. The company's Taser 10 and related products have driven revenue up 36% year over year in Q3, contributing to its strong performance.
- *Growing Demand for AI in Law Enforcement*: The growing demand for AI in law enforcement has also contributed to Axon's success.



These companies' strategic focus on AI and data centers, strong financial results, and growth prospects have contributed to their exceptional stock performance in 2024. As investors continue to recognize the potential for future growth, these companies may continue to drive the S&P 500's performance in the coming years. However, it is essential to consider the potential risks and challenges that these companies may face, such as valuation risks, regulatory hurdles, and market volatility, which could impact their stock performance.