Tech Stock Performance 2024: Biggest Gainers and Losers

Key Takeaways

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• MicroStrategy’s significant investment in Bitcoin has paid off handsomely, driving significant stock price gains.
• Nvidia’s leadership in AI chip technology has fueled its impressive stock performance.
• Super Micro Computer had a challenging year, dropping out of the Nasdaq 100.
• Magnificent Seven still leads the tech and AI sector.

The year 2024 was marked by a remarkable surge in the technology sector, primarily driven by the rapid advancement of artificial intelligence (AI). Several key players emerged as dominant forces, shaping the market environment and capturing significant investor attention.

MicroStrategy, Nvidia, Tesla and Super Micro Computer: Who were the best and worst performers in 2024?

MicroStrategy’s Bitcoin Strategy Pays Out

MicroStrategy stock surged by over 440% this year only, gaining a jump into the Nasdaq 100 index . According to experts, this inclusion could drive $2.1 billion in stock  purchases as portfolios adjust.

The rally in Bitcoin (BTC) in 2024, which led it to reach a record high of $108,000 in December, boosted MicroStrategy shares, MSTR, as the company’s value is heavily tied to its Bitcoin reserves rather than a traditional business model.

In 2024, MicroStrategy stock soared by more than 440%, outpacing Bitcoin’s 130% gain and the S&P 500’s 27% return.

MicroStrategy calls itself the “largest Bitcoin Treasury Company,” pivoting in 2020 from software to Bitcoin as a long-term store of value. Its reserve of 444,262 Bitcoins represents 2.2% of the total supply.

Recently, the company financed Bitcoin purchases by issuing debt.

Despite the success, critics like Citron Research argue MicroStrategy shares are “overpriced” and “detached” from Bitcoin fundamentals. Trading at twice the value of its Bitcoin holdings, its software division brought in under $120 million last quarter.

However, despite little criticism, MicroStrategy stock has gained 2,700%, over the last five years, far surpassing Nvidia’s 2,200% and Tesla’s 1,600% gains.

Nvidia Leads Among AI Stocks

In 2024, Nvidia stock experienced significant growth , with an increase of approximately 183%, as of late December. The company’s leadership in AI chip technology and strong demand for its products drove this surge.

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Nvidia’s market capitalization also saw substantial milestones, surpassing $2 trillion in February and reaching $3.6 trillion in November following the U.S. presidential election.

The chip manufacturer had a strong year, thanks to its sales, which boosted the financial results. According to an analysis by Omdia, Microsoft was the top buyer of Nvidia’s Hopper AI accelerators,  in 2024.

The tech giant reportedly acquired approximately 485,000 units, more than double the amount purchased by the second-largest customer, China’s ByteDance.

Palantir Joined Nasdaq 100

Palantir Technologies had a standout year in 2024, driven by strong earnings, its inclusion in the Nasdaq 100 and its strategic focus on AI. The stock’s impressive rally has turned its cofounders into billionaires.

Palantir (PLTR)  emerged as a leader in the AI-driven market boom, with shares skyrocketing 378% year-to-date. Unlike many speculative AI ventures, Palantir’s growth is anchored in solid operational performance and practical applications.

In its third-quarter earnings report , the company outperformed expectations, posting $725.5 million in revenue, a 30% year-over-year increase and $22 million above projections.

Its free cash flow margin also surged to 60%, up from 25% in the same quarter last year.

This operational success helped Palantir secure a place in the Nasdaq 100, cementing its growing reputation in the tech sector as its stock gains momentum and benefits from lucrative government contracts.

Super Micro Computer Had Some Challenges

Once a high-flying AI stock, Super Micro Computer (SMCI) now faces significant challenges, including accounting scandals, potential delisting and a cooling AI market. All of these issues have sent its stock plummeting and out from the Nasdaq 100.

Investor confidence is waning, and CEO Charles Liang’s position also appears increasingly precarious.

In its first-quarter results of the 2025 financial year , Super Micro reported net sales of $5.9 to $6.0 billion, slightly below forecasts, and a GAAP gross margin of 13%.

While non-GAAP earnings per share exceeded estimates, the company faces mounting pressure due to delayed filings, the resignation of Ernst & Young as its auditor and rumors of a DOJ investigation.

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The stock  is up by 19% in 2024 so far, but its descending trend started in March, when shares were worth $88 each. Their current value stands at $33 and the stock also dropped to around $20 per share.

Once a leader in the AI boom, Super Micro now struggles with declining margins and investor skepticism.

Although its revenue surged on AI server demand, recent accounting issues have erased year-to-date gains, raising concerns about the company’s future amidst a potential AI market correction.

Magnificent Seven Performance

The “Magnificent Seven ” stocks—Apple, Microsoft, Google’s parent Alphabet, Amazon, Nvidia, Meta Platforms and Tesla—have maintained their momentum in 2024, building on their impressive gains from 2023.

These companies, due to their significant market capitalizations, continue to wield considerable influence on the Nasdaq composite and S&P 500 indexes.

Nvidia remains a standout performer, and we’ve already talked about it. Amazon saw its stock rebound slightly after strong third-quarter earnings, supported by its AI-powered Bedrock platform.

Tesla hit an all-time high in December, but has since slipped slightly, even as its third-quarter profits grew by 9%.

Apple and Microsoft have also delivered solid results, with Apple benefiting from better-than-expected fourth-quarter earnings and Microsoft posting a 10% earnings increase driven by its robust cloud computing business.

Meta Platforms’ stock price declined slightly, despite a strong 19% revenue increase in its most recent quarter. The company reaffirmed its commitment to heavy investments in AI and the metaverse.

Alphabet, facing U.S. antitrust scrutiny, managed to inch higher, after delivering third-quarter results that exceeded Wall Street expectations.

These companies continue to dominate the tech sector, underscoring the market’s ongoing focus on artificial intelligence, cloud computing and innovation. Still, challenges such as regulatory pressures and cooling demand in some areas of the AI market highlight potential risks ahead.

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