Many major AI companies have driven growth in the S&P 500 this year. Super Micro Computer (SMCI) and Nvidia (NVDA) have been the biggest winners year-to-date. Additionally, AI-adjacent utility companies like Constellation Energy (CEG), Vistra (VST), and NRG Energy (NRG) have experienced significant growth, breaking into the top 10 for growth in 2024. However, the majority of this growth occurred in the first three months of the year. The following chart, produced by Investor's Business Daily, shows the top 10 growers within the S&P 500 year-to-date and their changes since two critical dates: March 13th and June 30th.
As shown in the chart, SMCI has experienced the largest year-to-date change but has been on a downward trajectory since March 13th. Additionally, six of the top ten performers have seen declines since June 30th. This reversal has opened the door for some non-AI names to become top performers, including Dow Jones giant 3M (MMM). The following chart highlights the companies that have seen the largest stock price appreciation since March 13th.
As shown in the chart of top growers since March 13th, there has been a notable market rotation away from large AI plays toward value stocks and companies that recently exceeded their earnings estimates. For instance, 3M saw its stock surge by 23% due to a strong earnings report on Friday. Only one stock, Mohawk Industries (MHK), appears on both the year-to-date and post-March 13th top performer lists, indicating its consistent growth. Investors should closely monitor market trends to identify which industries will outperform in the latter half of 2024, especially considering the potential impact of the upcoming election.
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