In 2023, U.S. equities ended the year with a jaw-breaking rally. The Nasdaq, which tracks many major technology equities, rose by 43.4% in 2023, beating all other major indices. The S&P500 and the Nasdaq are already poised to end the first quarter on a high note. Currently, the former is up 7.4% while the latter is, again, beating all other indices, having appreciated 8.4%. Undergirding the rally are some of the same tech giants that drove the Nasdaq’s performance in 2023. As the market rally continues, some of the stocks have the potential to redefine gravity.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) is making shareholders juicy returns again. The company’s stock returned a staggering gain of 240% last year, and now, the shares of NVDA stock have risen more than 79% on a year-to-date basis. Shares in the acclaimed chipmaker could continue their meteoric rise as AI solutions stay in high demand.
Nvidia reported earnings on February 21st, and fourth quarter revenues came in at $22.1 billion, up 22% sequentially and 265% on a year-over-year basis. Moreover, revenue for the full year increased 126% Y/Y. GAAP earnings per share also rose an astronomic 586% to $11.93. The AI “craze” powered much of Nvidia’s performance and will continue to do so for the foreseeable future.
Nvidia’s shares trade at 35.6x forward earnings, which is way less than other companies marketing AI solutions, such as Palantir (NYSE:PLTR), which trades at 79.8 forward earnings.
MicroStrategy (MSTR)
While I have criticized MicroStrategy‘s (NASDAQ:MSTR) high correlation with Bitcoin (BTC-USD), the company’s share are definitely redefining gravity as of late. For those who don’t know, MicroStrategy is a software company that specializes in business intelligence and analytics, helping improve the efficiency of users’ workflows. However, it is better known for its large Bitcoin portfolio.
The company’s stock has appreciated 346% in 2023, and a lot of that performance mimicked Bitcoin surge. The famed cryptocurrency had a great run last year, a lot of which had to do with bets on the approval of Bitcoin ETFs. The cryptocurrency has continued its rally in 2024, rising nearly 60% on a year-to-date perspective.
MSTR’s share price has, in tandem, has more than doubled since the start of the year. As the Bitcoin rally continues, MSTR shares could appreciate even more.
Meta Platforms (META)
Having a massive user base of nearly 4.0 billion monthly active users across its family of apps including Facebook, Instagram, WhatsApp and Messenger, Meta Platforms (NASDAQ:META) looks to be on its way to redefining gravity. Meta’s shares have already risen 43% on a year-to-date basis.
The company continues to make meaningful investments into virtual reality (VR) by injecting more capital into Facebook Reality Labs, a research division that develops cutting-edge technologies for augmented reality, haptics and neural interfaces. Operational efficiencies and decent revenue growth brought Meta a very profitable Q3 2023. Likewise, Meta’s Q4 earnings figures came in above Wall Street estimates, with total revenue rising 25% Y/Y and expenses decrease by 8% Y/Y.
The company’s focus on new product segments, like augmented reality, could help to incite more growth in the future, pushing up the company’s share price to new heights.
On the date of publication, Tyrik Torres did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
