3 Unstoppable Mega-Cap Stocks That Every Investor Should Own in 2024

Stocks to buy

Last year emerged as a time of unexpected resilience and expansion for the stock market driven by the strength of unstoppable mega-cap stocks. Notably, the S&P 500 wrapped up last year with a solid 24% gain, turning heads in the process.

Moreover, the stock market picked up from where it left off last year, taking things up a notch or two by hitting new highs several times in recent months. Central to this rally are mega-cap stocks, driving market indices to new heights on the back of the artificial intelligence (AI) craze.

Despite the skepticism regarding their ability to maintain such impressive growth rates and volatility, these three unstoppable mega-cap stocks offer an attractive long-term prospect for investors.

Nvidia (NVDA)

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Nvidia (NASDAQ:NVDA) is arguably the most talked-about tech giant in recent times. With its cutting-edge chip technology, it has revolutionized industries from gaming to autonomous vehicles. This extraordinary journey has skyrocketed its market cap to a jaw-dropping $2.3 trillion, driven by extraordinary gains fueled by the AI frenzy.

Moreover, fiscal 2024 has been a resounding success, with quarterly revenues skyrocketing to $22.1 billion, reflecting a robust 265% year-over-year (YOY) growth. This surge has boosted annual revenues to a record-breaking $60.9 billion, a 126% leap, reinforcing Nvidia’s position as a bellwether in the tech sphere.

Nvidia is broadening its ecosystem by incorporating its chips into public AI projects and launching software for AI chatbots on its RTX 30 and 40 series chips. These strategic moves, along with its powerful financial positioning, places Nvidia as a cornerstone for investors seeking growth and stability in the dynamic tech landscape.

AbbVie (ABBV)

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AbbVie (NYSE:ABBV) is a biopharmaceutical powerhouse that focuses on innovative therapies for chronic and complex diseases. The company has seen impressive market cap growth of 469% since 2013, hitting $315.54 billion, showcasing sustainable value.

Despite losing exclusivity for its Humira drug, the company is poised for a prosperous future, with analysts bullish on Skyrizi and Rinvoq filling the revenue gap, projected to surpass $15 billion by 2025. Additionally, Skyrizi for plaque psoriasis and Rinvoq for Crohn’s disease have already achieved billion-dollar drug status, with more innovative treatments on the horizon.

Bouyed by strategic acquisitions of ImmunoGen (NASDAQ: IMGN) and Cerevel Therapeutics (NASDAQ:CERE), expect AbbVie to continue adding new chapters to its growth story. These strategic acquisitions, particularly IMGN, could potentially raise its sales to more than $1 billion by 2026. This diversification positions AbbVie as a strong force in the evolving pharmaceutical landscape.

Salesforce (CRM)

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Salesforce (NYSE:CRM) enters the generative AI scene, making strategic plays to reinforce its CRM software market leadership. Its stock has witnessed an astonishing 80.24% upswing in just one year and is positioned for further gains ahead.  Tipranks’ analyst assigns a “Moderate Buy” rating to CRM stock, offering a 9.30% upside from current levels.

Transitioning to its fiscal fourth quarter (Q4) 2024 results, the company showcases a vigorous 11% year-over-year revenue bump to $9.29 billion, emphasizing its prowess in AI CRM solutions. Looking ahead, Salesforce projects a substantial revenue surge, aiming for $37.7 to $38 billion in 2025. This promising outlook is complemented by an enhanced 20.40% operating margin and a projected 21% to 24% YOY uptick in operating cash flow. Additionally, the introduction of the unified Einstein 1 Platform positions Salesforce at the forefront of the AI revolution in the CRM space, making it an essential holding for investors eyeing growth in the tech sector.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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