The 3 Best-Performing Stocks From the S&P 500 in 2024

The stock market has been full of standout performances in 2024, especially in areas benefiting from the rise of artificial intelligence (AI). While the S&P 500 ($SPX) itself has seen an impressive 27% gain this year, three companies have completely stolen the spotlight with triple-digit returns that leave the broader market in the dust. 

Leading the way is Palantir Technologies (PLTR), which has skyrocketed by an incredible 379%, fueled by what CEO Alexander Karp calls "unrelenting AI demand." Close behind is Vistra Corp (VST), up an impressive 274%, riding the wave of growing power needs for AI data centers. 

Nvidia (NVDA) rounds out this top three with a 183% surge, continuing to dominate AI chip production and reporting record-breaking quarterly revenue of $35.1 billion in Q3, a massive 94% jump from last year. 

What makes these gains even more impressive is that they came during a year when the S&P 500, Nasdaq Index ($NASX) and Dow Jones ($DOWI) all hit record highs. The success of these companies highlights a bigger shift happening across industries, where AI and data center growth are opening up new opportunities. 

Let’s take a closer look at how each of these stocks achieved such incredible results and why they’ve captured so much attention from investors in 2024.

Palantir Technologies (PLTR)

Palantir Technologies (PLTR), known for its AI-powered data analytics, has been the best-performing stock in the S&P 500 ($SPX) for 2024, with an incredible year-to-date (YTD) gain of 379%. The company provides software platforms like Gotham, Foundry, and Apollo, which government agencies and businesses widely use to make sense of large amounts of data. 

The massive rise in PLTR stock reflects strong business performance and growing investor excitement about AI solutions. 

With a market value of $187.66 billion, it’s now a major player in the AI space. However, its valuation is steep — its trailing price-to-earnings (P/E) ratio is 235x, and its forward P/E is 217.14, far above the sector average of 25.26x, making it one of the priciest stocks in the S&P 500.

In Q3 2024, Palantir reported strong financial results, with revenue up 30% year-over-year to $726 million. U.S. government revenue grew by 40%, while U.S. commercial revenue jumped by 54%, showing balanced growth across its markets. 

The company also turned a profit under GAAP standards, earning $144 million in net income and generating over $1 billion in free cash flow over the past year. For all of 2024, Palantir raised its revenue forecast to between $2.805 billion and $2.809 billion, driven by continued demand for its AI platforms.

Key developments also fueled Palantir’s success this year. It extended its partnership with the U.S. Army through a $618.9 million contract to enhance the Army Data Platform (ADP), strengthening its position in defense analytics. Additionally, its “Warp Speed” initiative aims to transform American manufacturing with advanced AI tools and has attracted big names like Anduril Industries and Panasonic Energy.

Despite these achievements, analysts are cautious about Palantir’s high valuation with a “Hold” consensus.

The average price target is $42.80 — far below its current price — showing skepticism about whether such high prices can be justified in the long term. Even so, investor interest remains strong, especially after Palantir’s inclusion in major indices like the S&P 500 and Nasdaq-100, which often boosts newly added stocks further.

Vistra Corp (VST)

Vistra Corp (VST), a major player in electricity and power generation, has become a standout in the energy sector. The company operates across natural gas (NGG25), nuclear, coal (LUF25), solar, and battery storage, focusing on providing reliable, affordable, and sustainable energy solutions. 

In 2024, Vistra delivered an incredible performance, making it one of the best-performing stocks in the S&P 500 with a year-to-date gain of 274%. The stock climbed from $37.77 at the start of the year to a peak of $143.87 in October. At its current price, Vistra has a market value of $48.77 billion. 

Its forward price-to-earnings (P/E) ratio of 24.56x (above the sector average of 17.34x) shows strong investor confidence in its future growth potential. Financially, Vistra had a stellar year, reporting Q3 net income of $1.84 billion and adjusted EBITDA of $1.44 billion, with revenue up 54% year-over-year to $6.29 billion.

For the full year, it raised its adjusted EBITDA guidance to between $5 billion and $5.2 billion and free cash flow to between $2.65 billion and $2.85 billion. Looking ahead to 2025, Vistra expects even more growth, projecting adjusted EBITDA between $5.5 billion and $6.1 billion.

The company’s recent initiatives have also boosted its position in the market. In December 2024, two new solar projects in Illinois were connected to the grid, expanding its renewable energy portfolio. Additionally, Vistra extended operations at its Baldwin Power Plant through 2027 to address grid reliability concerns while staying compliant with EPA regulations — an important step given rising energy demands.

Analysts are highly optimistic about Vistra’s future, with a consensus “Strong Buy” rating. The average price target is $166.08, suggesting potential upside of about 15% from its current price.

Nvidia Corporation (NVDA)

Nvidia Corporation (NVDA), a global leader in graphics processing units (GPUs) and artificial intelligence (AI) technologies, has firmly established itself as a key player in the tech industry. The company designs advanced GPUs that power everything from gaming and data centers to professional visualization and automotive solutions. 

In 2024, NVIDIA once again proved its strength, becoming one of the top-performing stocks in the S&P 500. The stock jumped 183% year-to-date.

With a market value of $3.43 trillion, Nvidia leads the semiconductor industry. However, its high valuation — reflected in a forward price-to-earnings (P/E) ratio of 47.48x, above the sector average of 25.26x — shows that investors are paying a premium for its expected growth.

Financially, Nvidia had a record-breaking year. In Q3, it reported $35.1 billion in revenue, up 94% from last year, with data center revenue alone surging 112% to $30.8 billion. GAAP earnings per share rose to $0.78, up 111%, while non-GAAP EPS hit $0.81, up 103%. For Q4, Nvidia expects revenue of $37.5 billion and gross margins above 73%, showing no signs of slowing down.

Nvidia’s recent initiatives highlight why it remains a leader in the S&P 500. It teamed up with Intel (INTC) to launch the Verifiable Compute AI framework, which ensures secure and accountable AI workflows — a big step toward wider adoption of AI technologies. The company also opened its first research and development center in Vietnam, expanding its global reach and tapping into emerging markets with strong engineering talent.

Analysts are extremely optimistic about Nvidia’s future with an overall “Strong Buy” rating. The average price target is $175.55, suggesting upside of about 25% from its current price.

Conclusion

In 2024, Palantir, Vistra, and Nvidia stood out as the S&P 500’s top performers, each excelling in their respective industries. Their remarkable gains highlight the power of innovation, strategic execution, and market leadership in driving shareholder value. While their valuations may spark debate, their strong fundamentals and forward momentum make them stocks to watch as we head into 2025.