Saad Ullah
Vistra (VST) has overtaken Nvidia (NVDA) as the top performer in the S&P 500, with a remarkable 218.15% gain in 2024. Power generation and AI-adjacent sectors boost its growth.
VST Stock Leads S&P 500 in 2024
Vistra (VST), a diversified electric utility and power generation firm, has become the standout performer in the S&P 500, racing past Nvidia (NVDA), which held the top position through much of the year. The dramatic rise of Vistra stock in September propelled the company to the forefront, marking an impressive 218.15% gain in 2024 alone. The stock soared 38.75% in September, peaking at an all-time high on October 1. According to MarketSurge analysis, VST stock surged out of a base formed in late May, leaving its 107.24 buy point far behind.
Vistra’s growth is partially driven by the rising power demand from AI data centers, as its power generation includes nuclear, solar, and battery storage, making it a critical player in the AI-adjacent industry. Furthermore, Vistra’s rally aligns with Constellation Energy’s plan to reopen the Three Mile Island nuclear facility, adding to the firm’s momentum.
Nvidia (NVDA) Stock: Still a Strong Contender
Nvidia (NVDA), despite being dethroned by Vistra, remains a force in the AI industry. Nvidia’s dominance in AI chips has fueled consistent triple-digit growth in earnings and sales over the past five quarters. In 2024, NVDA stock posted a 136.3% gain, even though it has faced some turbulence since mid-year. Shares have recently rebounded after an early September slump, but they still remain slightly below their mid-year highs.
Nvidia is also gearing up for the next wave of innovation with the anticipated release of its Blackwell AI chip line. The stock's current 131.26 buy point from a unique handle shows potential for future gains, although its growth may slow as the fiscal Q3 results are announced.
Constellation Energy (CEG) Gains on Nuclear Power
Another major S&P 500 player in 2024 is Constellation Energy (CEG), which has benefited from rising electricity prices and its role in nuclear power generation. In September, Constellation announced plans to restart Unit 1 of the Three Mile Island nuclear plant, to bring it back online by 2028. This development has contributed significantly to CEG’s 127.2% surge this year, with shares spiking 22% on the news.
CEG’s 20-year deal to provide power to Microsoft (MSFT) for its data centers further solidifies its position as a key player in the energy sector. Like Vistra, Constellation has become a significant AI-adjacent power supplier, benefiting from the energy needs of AI data centers.
Palantir (PLTR) Stock’s Impressive 2024 Run
Palantir (PLTR), a newcomer to the S&P 500 as of September 23, has also made a name for itself with an impressive 112.35% rise in 2024. Known for its government and military contracts, Palantir has seen a rapid increase in its commercial revenue, which grew by 27% in Q2. This has led to a strong earnings performance, with an 80% increase in the same quarter.
After hitting a low of 21.23 on August 5, Palantir stock has experienced a significant boost, driven by news of its inclusion in the S&P 500. The stock surged 14% on September 9 following the announcement, adding to its rapid ascent this year.
Howmet Aerospace (HWM): Non-AI S&P 500 Leader
Howmet Aerospace (HWM) stands out among the top S&P 500 performers as the only non-AI or AI-adjacent company. Specializing in titanium alloy products for major aircraft manufacturers such as Boeing (BA) and Airbus (EADSY), Howmet has benefited from the surge in demand for jets. HWM stock has gained 86.5% in 2024, with two key earnings-gap breakouts in May and July propelling the stock higher.
The company’s earnings jumped 52% in Q2, marking its strongest year-over-year performance in recent years. Howmet stock continues to climb, reaching a record high in late September with a new buying opportunity emerging at 98.15.
Vistra’s rise to the top of the S&P 500 showcases the growing impact of the power generation sector in an increasingly AI-driven world. While Nvidia remains a major player, Vistra's alignment with AI-adjacent industries and strategic growth initiatives have enabled it to surpass the tech giant. Constellation Energy, Palantir, and Howmet Aerospace have also capitalized on industry trends, contributing to the dynamic shifts within the S&P 500 in 2024.
Saad Ullah
