Nvidia (NVDA) has been a titan in the S&P 500, earning the top spot in 2023 and playing a monumental role in the index’s performance throughout much of this year. However, things have changed. The energy powerhouse Vistra (VST) has recently soared past Nvidia, creating a stir in the market. Constellation Energy (CEG) and Palantir Technologies (PLTR) are also notable winners in 2024, boasting impressive triple-digit returns, while Howmet Aerospace (HWM) is the only stock among the top five that’s not heavily involved in artificial intelligence (AI).
Vistra, known for its diverse power generation portfolio that includes natural gas, nuclear, solar, and battery storage capabilities, has seen its stock skyrocket by an astounding 259.3% this year as of October 4th. This steep ascent can be attributed to skyrocketing electricity prices and strong earnings reports. In September alone, Vistra’s stock jumped 38.75%, breaking free from a prolonged base established since late May.
Nvidia remains a critical player in the AI sector, with its market positioned as the primary supplier of chips for AI applications. The company’s financial growth has seen an extraordinary trajectory, with earnings and sales advancing in triple-digit percentages over the last five quarters. However, many are watching closely to see if this trend can sustain in the upcoming fiscal Q3 results as Nvidia prepares to roll out its next-generation AI chip, the Blackwell line.
Constellation Energy, in addition to its reputation as a nuclear power leader, has claimed headlines with its recent announcement to revive the Three Mile Island nuclear facility. Expected to come back online in 2028, this strategic move places Constellation in a favorable position to benefit from increasing electricity demands. Its stock has significantly climbed, recording a 144.3% increase in value since the beginning of 2024.
Palantir Technologies has predominantly catered to governmental departments and military contracts, but its commercial revenue has dramatically surged in recent quarters. After entering the S&P 500 on September 23, Palantir saw its stock rise by 133% in 2024, affirming confidence from the market as earnings for the second quarter highlighted a robust 80% growth.
Meanwhile, Howmet Aerospace is capitalizing on the booming demand for jets, having reported a substantial 52% increase in its Q2 earnings. The manufacturer supplies essential parts to aerospace giants such as Boeing and Airbus and is currently riding an impressive 88.5% gain this year. The stock recently consolidated after a successful breakout earlier in the year, offering potential new buying opportunities for investors.
As the market evolves, investors are keenly attuned to these shifts, particularly as event-driven catalysts, such as NVIDIA’s upcoming announcements and Tesla’s innovative developments, are likely to influence future stock performance. This captivating landscape provides fertile ground for strategic stock selections amid fluctuating trends.
For those looking for actionable insights, IBD offers comprehensive resources and analysis, including stock lists, interactive tools, and educational content focused on navigating these dynamic market conditions. Whether you’re a seasoned investor or just beginning, staying informed is key to making sound investment decisions in today’s fast-paced environment.