Despite the ceaseless concerns stemming from what some strategists have described as a growing list of risks, the U.S. stock market has been exceptionally strong in 2024.
The benchmark S&P 500 index is an impressive 22.76% in the green year-to-date (YTD), and the cryptocurrency markets have themselves been advancing, as exemplified by Bitcoin’s (BTC) 53.51% rise.
One prominent Wall Street expert, Wedbush’s noted technology bull Dan Ives, estimates that 2025 will not be weaker and that stocks – and particularly tech stocks – will continue impressing investors.
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Additionally, Ives believes that the world will welcome its first $4 trillion companies next year and has proposed his list of competitors for this achievement.
Nvidia (NASDAQ: NVDA)
Considering that Nvidia (NASDAQ: NVDA) is playing a central role in the ongoing artificial intelligence (AI) boom and that it has, in just the last two years, added some $2.5 trillion to its valuation, it is hardly surprising Ives considers it one of the prime competitors.
In 2024, NVDA shares are up 174.61% to their press time price of $132.21, and the firm’s market capitalization is at a staggering $3.243 trillion. For comparison, in late 2022, when the AI boom started with the public release of ChatGPT, it was at $310 billion.
The ‘insane’ demand for Nvidia’s Blackwell chip, the company’s numerous partnerships, the projected increase in the need for high-powered semiconductors as AI moves more to inference, and CEO Jensen Huang’s own plans for continued technological advancement all make Nvidia a logical contender for hitting $4 trillion first.
On the other hand, NVDA stock’s rapid rise and close dependence on the continuation of the AI craze also make it somewhat vulnerable to the exact opposite scenario, particularly when its stratospheric price-to-earnings (P/E) ratio is taken into account.
Apple (NASDAQ: AAPL)
Aramco’s long-time rival for the top spot on the list of the world’s biggest companies, Apple (NASDAQ: AAPL) has fallen off somewhat in 2024.
There are many factors that contributed to such a scenario, with the abandonment of the electric vehicle (EV) project and its late joining of the AI ‘revolution’ being the first to come to mind.
Nonetheless, AAPL shares have performed well this year and the stock is 23.96% in the green since January 2 – the first session after the New Year – with a price today of $230.13.
It is also not surprising that Ives considers it a prime contender for being the first company to hit $4 trillion, as more recent trading has been particularly positive for AAPL. The tech giant is, at press time, valued at $3.499 trillion, meaning it has reclaimed its spot as the most valuable company in the world.
Additionally, the expert has long considered the release of Apple Intelligence and the iPhone 16 as the opening moves of the next AI supercycle.
On the other hand, a bear case can also be found. Apple’s insistence on releasing new models every year has long been criticized as making the differences between generations trivial, and many new iPhone generations sidegrades – sometimes even downgrades – compared to their predecessors.
Early sales data for the iPhone 16 has brought these concerns into focus, and subsequent figures remain somewhat underwhelming.
Microsoft (NASDAQ: MSFT)
Along with being one of the biggest and most important technology companies in the world, Microsoft (NASDAQ: MSFT) has also demonstrated its foresight yet again as it, with a massive investment in OpenAI, became a part of the AI boom some three years before the boom started.
Having risen 10.82% in 2024 to its press time price of $410.92, and having seen its market capitalization expand to $3.053 by October 16, it is easy to see why Dan Ives named the Bill Gates-founded giant as his third top contender in the race to $4 trillion.
Microsoft has also been on a major expansion path, having completed a string of massive acquisitions, including the mammoth – and controversial – purchase of Activision Blizzard.
Still, despite its central role in the AI boom – and its setting for itself a continued role with a major investment in architecture made in partnership with BlackRock (NYSE: BLK) and several other prominent firms – the future may not be entirely rosy.
Microsoft antagonized a large portion of its user base with several features it announced for Windows 11 – the forced AI integration plans to have the system take continuous screenshots for ‘Windows Recall’ – and even before that, adoption hasn’t been stellar.
Such bumps in the road demonstrate that Microsoft’s business plans may not be as healthy in the long term as most of the Street expects.
