The Top S&P 500 Stock of 2024 (So Far) Isn't Nvidia. Here's Where History Says the Soaring Stock Is Headed in 2025.

Group 1: Nvidia Financial Performance - Nvidia reported a remarkable 94% year-over-year revenue growth for its fiscal 2025 third quarter, with stock prices up nearly 200% year to date [1] - Despite Nvidia's impressive performance, it is not the best-performing stock in the S&P 500 for 2024, a title currently held by Vistra, which has gained 332% [1][2] Group 2: Vistra's Market Position - Vistra provides residential electricity and owns power generation plants, including nuclear facilities, positioning it to meet the increasing power demands driven by artificial intelligence [2] - Vistra's stock was added to the S&P 500 in May, and historical data suggests that stocks added mid-year still tend to appreciate in value the following year [8] Group 3: Historical Stock Performance Insights - Over the past decade, top-performing stocks in the S&P 500 have included companies like Southwest Airlines, Netflix, Nvidia, and AMD, with many continuing to perform well in the subsequent year [4][5] - Historical analysis indicates that the best-performing stock in the S&P 500 tends to see further gains the following year, with strong underlying business results being a key driver [10][12] Group 4: Future Outlook for Vistra - Vistra is expected to benefit from growing demand for its services due to trends in AI and grid electrification, with a focus on expanding its nuclear power capabilities [11] - The company's history of profitability and returning cash to shareholders supports a positive outlook for its stock performance [11][12]