These Are the 5 Top-Performing Stocks in the Nasdaq-100 With 2024 Almost Over

Investors have had much to celebrate in 2024. The tech-centric Nasdaq-100, which tracks the performance of the 100 largest nonfinancial companies in the Nasdaq Composite, has gained 28% (as of Dec. 12).

Here are its best-performing stocks:

Data source: Finviz and yCharts on 12/13/2024. Table by author.

This eclectic group has a common thread that unites them:

• AppLovin uses artificial intelligence (AI) to help developers get their apps discovered and handle in-app advertising.
• Nvidia is the leading provider of graphics processing units (GPUs) used in gaming, cloud computing, data centers -- and, most recently, AI.
• Constellation Energy is the largest provider of clean energy and nuclear power in the U.S. and recently inked a deal with Microsoft to provide energy for its power-hungry AI data centers.
• Arm Holdings creates and licenses semiconductor designs and is getting a big boost from AI.
• Marvell develops semiconductors, networking, and storage devices used in data centers -- where much of AI resides.

If you haven't guessed by now, the common thread is AI. The excitement surrounding this technology has been palpable over the past few years, which is understandable. Generative AI is expected to generate $1.3 trillion by 2032, according to Bloomberg Intelligence, with some estimates much higher.

Are these highfliers still worth buying?

The most commonly used valuation metrics struggle with high-growth stocks, as they're generally focused on the past. However, using the more appropriate price/earnings-to-growth (PEG) ratio, which factors in accelerating growth, shows each of these highfliers with a multiple of less than 1 (as of this writing), the standard for an undervalued stock. Furthermore, each of these market leaders has earned an average analyst rating of "buy."

If Wall Street is right (I think it is), there's still upside ahead.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $348,112!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $46,992!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $495,539!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of December 9, 2024

Danny Vena has positions in Microsoft and Nvidia. The Motley Fool has positions in and recommends AppLovin, Microsoft, and Nvidia. The Motley Fool recommends Constellation Energy and Marvell Technology and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.