In 2024, two powerful forces have driven the incredible stock market performance of some of the most notable U.S. tech companies—artificial intelligence (AI) and cryptocurrency. While AI continues to remain somewhat abstract for many consumers, its impact on business operations and profits is undeniable. Meanwhile, the cryptocurrency sector, especially the launch of bitcoin exchange-traded funds (ETFs), has fueled significant growth for several companies deeply connected to the crypto ecosystem.
As the Nasdaq surged 33% and major U.S. indexes posted double-digit gains, five tech companies with valuations over $5 billion emerged as the year’s biggest stock market winners. These companies, benefitting from rapid advances in AI and crypto, have seen their market caps skyrocket, with their stock prices delivering extraordinary returns.
AppLovin: AI and Ad-Tech Innovation Drive 758% Surge
AppLovin, a company initially known for its mobile gaming portfolio, has undergone a dramatic transformation in 2024, thanks to its pivot toward AI-driven advertising technology. Starting the year with a market cap of around $13 billion, the company now boasts a valuation north of $110 billion, making it more valuable than some tech giants like Intel and Airbnb. AppLovin’s stock has surged by a jaw-dropping 758% this year.
The driving force behind AppLovin’s meteoric rise is its innovative ad tech platform, AXON, which uses AI to serve more targeted advertisements within mobile games. The company’s software platform revenue grew by 66% in Q3, outpacing total revenue growth. CEO Adam Foroughi, who has become a billionaire thanks to the company’s success, has expressed excitement about even more innovative products in the pipeline, including a game-based e-commerce ad system that could change the way businesses target consumers.
MicroStrategy: Bitcoin Strategy Fuels 467% Gain
For MicroStrategy, the year 2024 has proven even more lucrative than the previous one. Despite an already impressive 346% stock increase in 2023, the company’s stock has risen another 467% in 2024. MicroStrategy’s stock rally is largely tied to its aggressive bitcoin accumulation strategy, which has seen the company amass over 444,000 bitcoins since mid-2020, making it the fourth-largest holder of the cryptocurrency.
This year, the company’s stock price surged, partially driven by the growing popularity of bitcoin, and even more so after Donald Trump’s election victory, which garnered significant support from the crypto industry. As of now, MicroStrategy’s market cap has rocketed from around $1.1 billion to $80 billion, thanks to its extensive bitcoin holdings, which are valued at close to $44 billion. The company’s strategy of using its rising stock price to fund further bitcoin purchases has paid off spectacularly.
Palantir: AI Demand and Election Boost Lead to 380% Stock Surge
Palantir Technologies, a leader in data analytics for government and defense agencies, has seen its stock soar by 380% in 2024, propelled by surging demand for AI-driven solutions. The company’s success in AI, particularly in its software tools that analyze massive datasets for governmental and defense purposes, has been a key contributor to its stock performance.
Palantir’s stock jumped 23% in November following a strong earnings report, which showed impressive revenue growth driven by AI demand. The stock continued to climb, rising an additional 8.6% after Donald Trump’s election win, as the company has strong ties to the Trump administration, with co-founder Peter Thiel being one of the ex-president’s major backers. Palantir’s ability to capitalize on AI advancements and its solid government contracts have made it a standout performer in 2024.
AI and Crypto Are Reshaping the Tech Landscape
The explosive growth seen by companies like AppLovin, MicroStrategy, and Palantir underscores the transformative power of artificial intelligence and cryptocurrency in 2024. While consumers may still be grappling with how these technologies will impact their everyday lives, it’s clear that businesses are already reaping substantial rewards. As AI continues to revolutionize industries and crypto maintains its momentum, these sectors will likely remain key drivers of growth in the tech space for years to come.
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