Tech Titans Set to Battle for $4 Trillion Valuation as U.S. Stock Market Soars

The U.S. stock market has shown remarkable resilience in 2024, with the S&P 500 rising by 22.76% year-to-date, even amid rising concerns about various risks.

The cryptocurrency sector has also made significant gains, highlighted by Bitcoin’s impressive 53.51% increase.

Dan Ives, a well-known analyst from Wedbush, expects this positive momentum to continue into 2025, particularly for technology stocks. He predicts that we could see the first companies reach a $4 trillion valuation next year, naming Nvidia, Apple, and Microsoft as the leading contenders. Ives believes advancements in artificial intelligence (AI) will drive tech stocks up by around 20%.

Nvidia has solidified its role as a key player in the AI boom, adding approximately $2.5 trillion to its valuation in the last two years. The company’s stock has surged 174.61% this year, now trading at $132.21, with a market capitalization of $3.243 trillion. This impressive growth is fueled by strong demand for its Blackwell chip and strategic partnerships, although its high price-to-earnings ratio raises questions about future sustainability.

READ MORE:

Is Elizabeth Warren Softening Her Stance on Cryptocurrency Regulation?

Meanwhile, Apple has encountered challenges this year, particularly after abandoning its electric vehicle project and entering the AI space later than its competitors. Despite this, Apple’s shares have risen by 23.96%, currently priced at $230.13, with a market cap of $3.499 trillion. Ives sees promise in upcoming products like Apple Intelligence and the iPhone 16, which could initiate a new growth cycle. However, concerns remain about the incremental updates in its product lineup and the underwhelming initial sales of the iPhone 16.

Microsoft has leveraged its early investment in OpenAI, establishing a strong presence in the AI market. Its stock has increased by 10.82% this year, currently valued at $410.92 and holding a market capitalization of $3.053 trillion. The company has been on an acquisition spree, including the controversial purchase of Activision Blizzard. However, recent user feedback regarding features in Windows 11 has raised concerns, suggesting that Microsoft may face challenges to its long-term growth strategy.

Alexander Zdravkov