Another great year for the stock market is in the books. The S&P 500 (^GSPC 0.16%), Nasdaq Composite (^IXIC -0.06%), and Dow Jones Industrial Average (^DJI 0.25%) finished the year up 23%, 29%, and 13%, respectively.
Yet some stocks put those figures to shame. So, let's examine 10 of the stock market's top performers from last year, and I'll reveal the five stocks I'm eager to buy right now.
Image source: Getty Images.
10 stocks that more than doubled in 2024
In order from the highest returns to lowest, here are 10 stocks that more than doubled in 2024:
- SoundHound AI (NASDAQ: SOUN)
- AppLovin (NASDAQ: APP)
- Rocket Lab USA (RKLB -2.11%)
- Palantir Technologies (PLTR -2.52%)
- Carvana (NYSE: CVNA)
- IonQ (NYSE: IONQ)
- Robinhood (HOOD 0.62%)
- Nvidia (NVDA -0.02%)
- Spotify (SPOT 3.41%)
- Broadcom (NASDAQ: AVGO)
It may come as no surprise that many of the stocks on this list are involved in artificial intelligence (AI). Indeed, five of the stocks (SoundHound, AppLovin, Palantir Technologies, Nvidia, and Broadcom) are companies with significant ties to AI technology.
The remaining stocks span a variety of sectors, including investment services (Robinhood), automotive retail (Carvana), aerospace (Rocket Lab USA), streaming (Spotify), and quantum computing (IonQ).
Yet, while all these stocks are interesting in their own right, there are only five that I'm eager to consider right now.
1. Rocket Lab USA
First, there's Rocket Lab, which is a space logistics company that delivers various services ranging from satellite construction to space launches.
Last year, the company successfully launched 15 rockets from launch pads located in New Zealand and Virginia. The company serves both commercial and government clients, ranging from NASA and the U.S. Space Force to private space companies.
With revenue growth of 55% as of its most recent quarter (the three months ending on Sept. 30), Rocket Lab is demonstrating that the space economy is an area to watch in 2025 -- and beyond.
2. Palantir Technologies
The reason Palantir makes the cut is simple: The company is incredibly well-positioned to capitalize on the rise of the AI ecosystem. In other words, organizations are eager to implement AI to drive efficiency -- through cost-cutting, higher sales, faster deliveries, etc. Palantir is one of the few companies with a platform that can help organizations meet those goals today.
That's why Palantir's management has described demand for the company's platform as "unrelenting." In turn, the company reported 30% year-over-year revenue growth in its most recent quarter (the three months ending on Sept. 30).
Granted, shares of Palantir are expensive, with the stock sporting a price-to-sales ratio of more than 60x -- making it out of bounds for some investors. However, for those willing to buy and hold for the long term, Palantir could be one of the biggest winners of the decades-long AI revolution, making it a name to consider now.
3. Robinhood
Robinhood shares advanced nearly 200% last year as the company fired on all cylinders. The reason it makes the cut as a stock I want to own in 2025 -- and beyond -- is that it could be a major beneficiary of a significant transition in the world of investing.
In short, the Great Wealth Transfer (GWT) is starting. That's the term for the more than $50 trillion in wealth that will be passed from baby boomers to younger generations over the next few decades.
Robinhood, which is often favored by younger investors, stands to benefit as the GWT plays out. The company reported 32% revenue growth in its most recent quarter (the three months ending on Sept. 30), driven by increased crypto and options trading. What's more, its assets under custody (AUC) soared by 76% to $152 billion.
In other words, the GWT is already beginning, making Robinhood a stock to remember.
4. Spotify
Next, let's talk about Spotify.
I'm a longtime admirer of Spotify, and last year, that admiration paid off handsomely. The stock advanced by more than 138%. Since the stock bottomed in 2022, shares are up more than 400%.
What's behind the big rally? Two things, in my view. First, tech stocks -- and streaming stocks in particular -- were undervalued in 2022, as investors feared a nasty recession that never materialized.
Second, Spotify's management took some bold steps that improved the company's overall fundamentals. Specifically, CEO Daniel Ek cut back on certain unprofitable segments and refocused attention on music streaming.
As a result, the company is now turning a profit regularly.
Sometimes, investing doesn't have to be complicated. Simply identify a growing business with a solid management team, buy shares -- and wait. That's what I've done (and will continue to do) with Spotify.
5. Nvidia
Finally, there's Nvidia.
The company sits at the center of the circle when it comes to the AI revolution. Nvidia's graphics processing units (GPUs) are the most sought-after AI chips around -- favored by developers for their power and design.
While some investors may fear it is too late to invest in Nvidia stock, those concerns may be overblown. Consider Nvidia's sales -- both how quickly they have grown, and how much more they are expected to grow. The company has already increased annual revenue from around $26 billion in 2022 to over $113 billion right now. Looking ahead, analysts expect the company to approach $200 billion in sales by fiscal year 2026 (the three months ending on Jan. 28, 2026).
For context, $200 billion in sales would put Nvidia in rarefied air. Only 14 American companies boast annual revenue of more than $200 billion -- including legendary corporate giants like Apple, Amazon, Microsoft, ExxonMobil, and Walmart.
In closing, there's still plenty of time for investors to consider Nvidia. The AI ecosystem is only getting started, and Nvidia will play a key role in this sector for many years to come. I want to buy as 2025 gets rolling.
