These Are the 5 Top-Performing Stocks in the Nasdaq-100 With 2024 Almost Over
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Investors have had much to celebrate in 2024. The tech-centric Nasdaq-100, which tracks the performance of the 100 largest nonfinancial companies in the Nasdaq Composite, has gained 28% (as of Dec. 12).
Here are its best-performing stocks:
| Nasdaq-100 Stock | Year-to-Date Return | Market Cap | Company Description |
|---|---|---|---|
| AppLovin (NASDAQ: APP) | 724% | $113 billion | App monetization |
| Nvidia (NASDAQ: NVDA) | 169% | $3.3 trillion | AI semiconductors |
| Constellation Energy (NASDAQ: CEG) | 104% | $75 billion | Clean energy |
| ARM Holdings (NASDAQ: ARM) | 104% | $161 billion | Chip design |
| Marvell Technology (NASDAQ: MRVL) | 96% | $104 billion | Semiconductors |
Data source: Finviz and yCharts on 12/13/2024. Table by author.
This eclectic group has a common thread that unites them:
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AppLovin uses artificial intelligence (AI) to help developers get their apps discovered and handle in-app advertising.
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Nvidia is the leading provider of graphics processing units (GPUs) used in gaming, cloud computing, data centers -- and, most recently, AI.
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Constellation Energy is the largest provider of clean energy and nuclear power in the U.S. and recently inked a deal with Microsoft to provide energy for its power-hungry AI data centers.
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Arm Holdings creates and licenses semiconductor designs and is getting a big boost from AI.
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Marvell develops semiconductors, networking, and storage devices used in data centers -- where much of AI resides.
If you haven't guessed by now, the common thread is AI. The excitement surrounding this technology has been palpable over the past few years, which is understandable. Generative AI is expected to generate $1.3 trillion by 2032, according to Bloomberg Intelligence, with some estimates much higher.
Are these highfliers still worth buying?
The most commonly used valuation metrics struggle with high-growth stocks, as they're generally focused on the past. However, using the more appropriate price/earnings-to-growth (PEG) ratio, which factors in accelerating growth, shows each of these highfliers with a multiple of less than 1 (as of this writing), the standard for an undervalued stock. Furthermore, each of these market leaders has earned an average analyst rating of "buy."
If Wall Street is right (I think it is), there's still upside ahead.
Should you invest $1,000 in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.