7 US Stocks That Outperformed NVIDIA in 2024

In 2024, Nvidia’s share price soared by an amazing 178%, pushing the company’s market capitalisation to an impressive $3.3 trillion dollars. While this was undoubtedly an incredible performance, we’ve identified 7 companies that have done even better, outperforming Nvidia. Let’s explore what these companies do as well as analyse the catalysts driving their exceptional share price growth – whether through strong performance for the recent periods or due to other key factors – to provide readers with valuable insights into these companies that are currently in the limelight.

1) AppLovin Corp (NASDAQ:APP)

AppLovin is a mobile technology company that provides software and AI solutions designed to help businesses connect with customers. Its solutions aim to help increase average revenue per daily active user, grow ad inventory, acquire app users and increase in-app purchases

AppLovin saw strong growth in 2024, with 3Q24 Software Platform revenue of $835 million, up 66% YoY, driven by continued development of its proprietary AXON engine through ongoing self-learning and directed model enhancements.

These technology enhancements allowed their advertising customers to further increase the scale of their spend on AppLovin’s platform while consistently achieving their return on ad spend goals.

The Software Platform Adjusted EBITDA for 3Q24 grew 79% YoY to $653 million at an Adjusted EBITDA margin of 78% reflecting continued management of operating leverage as the business scales. AppLovin expects to continue investment in infrastructure as the business continue to scale and secure data center capacity to support future growth. 

2) MicroStrategy Inc (NASDAQ: MSTR)

MicroStrategy has a business intelligence (BI) platform that uses AI technology to help users find information and make business decisions. However, the core focus of the business now is its position as the world’s first and largest Bitcoin Treasury Company.

MSTR has adopted Bitcoin as its primary treasury reserve asset. By using proceeds from equity and debt financings, as well as cash flows from its operations, MSTR accumulates Bitcoin and advocate for its role as digital capital.

In 2024, the price of bitcoin more than doubled from $43k at the start of the year, to $97k by year end, with a peak of $106k.

The share price of MSTR closely tracks Bitcoin’s performance due to the company’s substantial exposure to bitcoin.

As of December 8, 2024, MicroStrategy was reported to own 423,650 bitcoins, worth $42.43 billion, and is the largest corporate holder of the asset. On the strength of this asset, MicroStrategy was included in the Nasdaq-100 effective December 23, 2024.

3) Palantir Technologies (NASDAQ: PLTR)

Palantir Technologies’s first claim to fame was its involvement in the operation that led to the capture and killing of Osama bin Laden in 2011.

Palantir is a data analytics company that provides software to integrate and analyse large amounts of data from various sources. The company’s software was used to integrate intelligence reports and information from surveillance and reconnaissance activities. This helped to create a detailed intelligence picture that led to the identification of the courier network that led to bin Laden’s compound in Pakistan.

Today, Palantir’s software is used by governments, corporations, and non-governmental organizations around the world. Some of its commercial clients include banks, hedge funds, and retailers. Palantir’s software is designed to be easy to use, with non-technical users able to discover and analyze data easily.

Its two key tools are Foundry, a data operations platform that can be used for commercial and civil government purposes and Apollo, a mission control tool for autonomous software deployment.

Palantir’s 3Q24 revenue grew 30% YoY and 7% QoQ to $726 million. GAAP income from operations of $113 million, representing a 16% margin. GAAP EPS grew 100% YoY to $0.06. Adjusted EPS grew 43% YoY to $0.10.

4) Carvana Co (NYSE: CVNA)

Carvana is an online retailer that allows customers to buy, sell, and finance used cars. Customers can browse a nationwide inventory, purchase a vehicle online, and choose home delivery or pickup at a Car Vending Machine. Customers can also sell or trade in their current vehicle online. Carvana also provides purchase financing similar to other retailers.

For 3Q24, retail units sold totalled 108,651, an increase of 34% resulting in revenue of $3.655 billion, an increase of 32%. Gross profit was $807 million, an increase of 67%. Adjusted EBITDA margin was 11.7%, an increase from 5.3% while GAAP operating income was $337 million, a significant increase of $289 million YoY.

Carvana was recently accused by prominent short-seller Hindenburg Research of impropriety in a report alleging that the auto retailer’s subprime loan portfolio carries substantial risk and that its growth is unsustainable. The report also claim that Carvana has lax underwriting standards and uses a company owned by the father of Chief Executive Officer to boost results. Due to this accusations, this is one stock which we would avoid for now.

5) Vistra Corp (NYSE: VST)

Vistra is the largest competitive power generator in the U.S., with a capacity of approximately 41,000 megawatts, or enough to power 20 million homes. The company operates in all major competitive wholesale markets across the country and stands as a leader in the energy transformation and expansion. Vistra maintains an unyielding focus on reliability, affordability, and sustainability, powered by a diverse portfolio that includes natural gas, nuclear, coal, solar, and battery energy storage facilities.

The company continues to grow its zero-carbon resources, operating the second-largest fleet of competitive nuclear power plants in the country, with substantial battery energy storage capacity, and a growing number of solar facilities.

Vistra is actually an artificial intelligence (AI) and data centre play. The company operates in the nuclear power industry, an emerging important sector arising from these two themes as nuclear energy is increasingly viewed as a cheap and clean source of power to fund the increasing needs of AI and data centres. The company also has potential benefits from the nuclear production tax credit.

6) Robinhood Markets (NASDAQ: HOOD)

Robinhood Markets is a financial services company that provides an electronic trading platform accessible via mobile app that facilitates commission-free trades of stocks, exchange-traded funds and cryptocurrency, as well as cryptocurrency wallets, credit cards and other banking services.

Revenues for 3Q24 increased 36% YoY to $637 million. This was mainly contributed by transaction-based revenues which increased 72% YoY to $319 million, primarily driven by options revenue of $202 million, up 63%, cryptocurrencies revenue of $61 million, up 165%, and equities revenue of $37 million, up 37%. Other revenues also increased 42% YoY to $44 million, primarily due to increased Gold subscription revenues.

Adjusted EBITDA (non-GAAP) increased 96% YoY to $268 million. Funded Customers accounts increased by 1.0 million YoY to 24.3 million and Investment Accounts increased by 1.5 million YoY to 25.1 million. Assets Under Custody increased 76% YoY to $152.2 billion, driven by continued Net Deposits and higher equity and cryptocurrency valuations. Average Revenue Per User (ARPU) increased by 31% year-over-year to $105.

7) Rocket Lab USA Inc (NASDAQ: RKLB)

Rocket Lab is an aerospace manufacturer and launch service provider. Its Electron orbital rockets launches small satellites, and has launched 56 times as of 2024 with 4 failures. In comparison, Elon Musk’s SpaceX has launched 134 times.

SpaceX operates the Falcon 9 and Falcon Heavy rockets, as well as the Dragon and Starship spacecraft. Rocket Lab’s Explorer platform can be used for small spacecraft missions to planetary destinations.

Comparing Rocket Lab to SpaceX, SpaceX’s Falcon 9 rocket has a much larger payload capacity than Rocket Lab’s Electron rocket. SpaceX’s Falcon 9 Payload capacity has a maximum payload of 22,800 kg, while the Electron has a maximum payload of 300 kg.

SpaceX also has economies of scale as a Falcon 9 launch costs around $3,000–$6,000 per kg, while an Electron launch costs around $25,000 per kg.  This means that Rocket Lab’s launches are used for smaller scale requirements.

SpaceX is valued at more than $350 billion while Rocket Lab is a mere $13 billion. However, SpaceX revenue is estimated to be $15 billion while Rocket Lab is a mere $400 million which actually makes SpaceX cheaper than Rocket Lab. However, it is not an exact comparison also because SpaceX developed Starlink, a satellite internet constellation.

Closing statements

In 2024, The Dow Jones Index rose by 13% while the NASDAQ surged 29%. Although both indices cover a broad range of sectors, the NASDAQ is weighted towards technology stocks. Many of the stocks that we’ve covered today fits the NASDAQ profile and have performed strongly in 2024.

Looking forward to 2025, some investors may consider shifting their attention to the underdogs and potential turnaround plays. While this might be tempting, we would caution against that and recommend focusing on companies who are likely to record continued revenue growth or have the eyeballs of investors due to its thematic focus.

If you’re looking for more stock ideas, Alvin shares how he finds the best stocks to invest in to grow our Dr Wealth portfolio. Learn more here.