Nvidia powered 22% of S&P 500 gains in 2024, outpacing Apple and Microsoft by 3x

In a year marked by inflation and election uncertainty, the US stock market reached new highs.

Like in 2023, AI hype fueled the S&P 500’s strong growth, with Nvidia as the largest contributor.

According to data presented by Stocklytics.com, Nvidia contributed more than 22% to the S&P 500’s overall return in 2024, far more than any other tech giant in the “Magnificent Seven” group.

Nvidia outpaced Apple and Microsoft 3x, and Amazon and Meta 4x

Being a market-cap-weighted index, the S&P 500 heavily reflects the performance of mega-cap companies. While Apple, Amazon, Microsoft, Meta, Alphabet, Tesla, and Nvidia collectively drove more than half of the index’s gains last year, Nvidia stole the spotlight.

The AI-focused chipmaker has had another fantastic year. Each time after posting better-than-expected financial results, Nvidia’s stock price skyrocketed, helping the company end the year with a massive 171% gain.

According to analysts at S&P Dow Jones Indices, the S&P 500 Index returned 25% last year. The AI giant Nvidia contributed 22.4% to the index’s total return, putting it miles ahead of Apple, Microsoft, and Amazon.

Apple was the second largest contributor despite the company’s share price increasing by 31%. The tech giant accounted for 7.4% of the index’s full-year return, and Microsoft closely followed with a 6.9% share. Compared to the leading Nvidia, both tech giants had a three times lower share in the S&P 500 Index’s 2024 gain. Amazon and Meta had even smaller impacts, accounting for 5.9% and 5.5% of the full-year return, four times less than Nvidia.

Analyzed by sectors, information technology contributed to over 43% of the index’s full-year return, far ahead of any other segment. The financials, communication services, and consumer discretionary followed, with 15.3%, 13.5%, and 11%, respectively.

Intel dragged the S&P 500 Index down by 1.3%

However, not all tech companies thrived. While its rivals Nivida and other silicon chip companies saw double-digit growth, Intel trailed behind the market, with its stock remaining deep in the red zone.

Due to swelling competition, significant manufacturing missteps, and an extended decline in the company’s business, Intel stocks plunged by 60% last year, making it the largest negative contributor to the S&P 500’s performance, dragging the index down by 1.3%.

Other laggards like Adobe, Boeing, and CVS Health also posted double-digit losses but had less impact due to their smaller index weight, pulling the S&P 500 down by just 0.7%, 0.6%, and 0.4%, respectively.