Top 5 Dow Jones Stocks of 2024: A Year of AI, Retail, and Finance

As the year 2024 comes to a close, it's clear that the Dow Jones Industrial Average (DJIA) has had a strong performance, with the index up by 18.7% year-to-date. Much of this rise can be attributed to the exceptional performance of the top five gainers among its 30 components. Let's take a closer look at these blue-chip giants and the factors that contributed to their impressive stock growth.

1. Nvidia (NVDA): The AI chip superpower was the standout performer, with its stock more than doubling (up 171%) in 2024. Nvidia's exceptional performance can be attributed to the mainstream adoption of artificial intelligence, which drove demand for its advanced semiconductors. The company's revenue guidance slightly topped views, and it posted a 103% surge in quarterly earnings, with revenue almost doubling. Morgan Stanley reiterated Nvidia as a top pick, rating it overweight with a $166 price target, citing strong underlying dynamics despite mixed near-term data points.
2. Walmart (WMT): The retail giant's stock surged 71.9% in 2024, making it the second-biggest name on the Dow. Walmart's strong performance can be attributed to its embrace of technology to grow e-commerce sales and make operations more efficient. The company's famously low prices continue to resonate with inflation-weary shoppers, and its earnings have surprised to the upside in the last 10 quarters. Telsey Advisory Group named Walmart one of its top picks for 2025 in the discounters and supermarkets sector, expecting companies to leverage social media to sell products and enhance supply chains.
3. American Express (AXP): American Express' stock climbed 58.4% during the year, securing the third spot on the Dow. The credit card company benefited from a recovery in travel and entertainment spending after the pandemic and attracted high-spending, high-credit-quality customers. The growing appeal of American Express with younger cardholders also boosted new card acquisitions. Morgan Stanley noted that American Express' 2024 story was one of stabilization, with higher delinquencies moderating to the slowest pace in nearly three years. The firm raised its price target on American Express to $305 from $252, keeping an equal weight rating on the shares, and sees consumer credit on solid footing in 2025.
4. Goldman Sachs (GS): Goldman Sachs' stock jumped 48.4% in 2024, coming in fourth on the Dow. The investment banking giant's strong performance can be attributed to its interconnected franchises and continued expansion of its asset management business. Analysts expect Goldman Sachs and big banks to be key beneficiaries of the incoming Trump administration's focus on deregulation and an anticipated rebound in capital markets activity under President-elect Trump. JPMorgan rates Goldman Sachs stock overweight and recently raised its price target to $550 from $520, welcoming the ongoing refocusing of the group.
5. Amazon.com (AMZN): The e-commerce technology giant's stock surged 45% in 2024, despite intense competition in the e-commerce and retail sectors. Amazon's growth in Amazon Web Services (AWS) and advertising revenue helped power its stock higher in 2024. Additionally, Amazon leveraged AI technologies, such as bringing its AI assistant Amazon Q to its AWS enterprise customers. The company's stock surged 45% in 2024, despite intense competition in the e-commerce and retail sectors.



These top-performing Dow Jones stocks have contributed significantly to the overall rise of the DJIA in 2024. Their strong performances can be attributed to various factors, including the mainstream adoption of AI, the recovery of consumer spending after the pandemic, and the potential benefits of deregulation and a rebound in capital markets activity under the Trump administration. As we look ahead to 2025, investors will continue to monitor these stocks and the broader market trends to identify new opportunities and mitigate risks.