Nvidia has been a standout performer in the stock market over the past few years, regularly delivering triple-digit gains. In 2024, the chipmaker once again demonstrated its prowess, achieving a remarkable 180% year-to-date increase. However, even with its dominance, three S&P 500 stocks have surpassed Nvidia’s performance this year, each fueled by unique growth drivers and market dynamics.
Palantir Technologies Takes the Lead
Palantir Technologies has emerged as the top-performing stock in the S&P 500 in 2024, with a year-to-date gain exceeding 300%. The artificial intelligence (AI) and data analytics software company joined the S&P 500 in September 2024, a move that contributed to its rapid rise. However, Palantir’s success began earlier, driven by strong demand for AI-powered solutions.
In the third quarter, Palantir reported a 30% year-over-year revenue increase, highlighting its capacity to capitalize on the growing AI sector. The company gained further momentum after the U.S. presidential election in November, as market sentiment leaned in its favor under the incoming administration. Palantir’s strong growth momentum has positioned it as a leading force in the rapidly evolving AI industry.
Vistra Energizes the Utility Sector
Vistra, an electricity provider operating in 20 states, defied expectations for utility stocks in 2024 by quadrupling its share price. Its success stems from strategic moves in the energy sector, particularly in nuclear power. Earlier this year, the company finalized its acquisition of Energy Harbor, boosting its nuclear power generation capacity by nearly 4,000 megawatts.
Vistra’s involvement in AI indirectly bolstered its performance as well. Data centers running AI applications require substantial energy, and Vistra secured major agreements to supply power to Amazon in Texas and Microsoft in Illinois. This dual focus on nuclear energy expansion and AI-related electricity demand positioned Vistra as one of the year’s most exciting utility stocks.
Texas Pacific Land Corp. Rides the Energy Boom
Texas Pacific Land Corp. also posted impressive gains in 2024, with its share price climbing over 190%. The company owns approximately 873,000 acres in Texas, primarily in the Permian Basin, the most productive oil region in the United States.
Although the company conducted a three-for-one stock split in March 2024, this move was not the primary driver of its growth. Instead, its rise was supported by strategic index additions, including joining the S&P MidCap 400 in June and the S&P 500 in December. The company’s earnings come from royalties paid by oil and gas producers operating on its land, and the incoming administration’s energy policies are expected to provide additional support for growth.
Who Could Outperform Nvidia Again in 2025?
Looking ahead to 2025, Vistra appears to have the strongest prospects among the three stocks to potentially outpace Nvidia. The company is poised to benefit from continued growth in AI-driven data center demand and increasing reliance on nuclear power. With a low price-to-earnings-to-growth (PEG) ratio of 0.89, Vistra stands on solid financial ground for sustained growth.
While Palantir and Texas Pacific Land both have strong fundamentals, challenges remain. Palantir’s valuation raises concerns for some investors, despite its impressive revenue growth. Similarly, Texas Pacific Land’s reliance on royalties and energy market dynamics makes its trajectory less predictable.
New Market Leaders Redefine Success in 2024
Nvidia’s dominance in the S&P 500 has been remarkable, but 2024 highlights the dynamism of the market, with Palantir, Vistra, and Texas Pacific Land outshining even this tech giant. Each of these companies leveraged unique opportunities—AI growth, nuclear power expansion, and energy royalties—to achieve record-breaking performances. While Nvidia’s innovative edge remains a force to be reckoned with, these three stocks are a reminder that leadership in the market is never guaranteed, and new players are always ready to claim the spotlight.
