Prediction: These will be the best S&P 500 stocks in 2024

You’ve probably heard a form of disclaimer, “Past performance is no guarantee of future results.” And the statement is true. However, I would add something to the disclaimer: “But a big advance is almost always a good thing.”

Several large-cap stocks have a big head start that could allow them to finish the year strong. I predict these will be the top three performers S&P 500 (^GSPC 1.15%) stocks in 2024.

1. Nvidia

Nvidia (NVDA 4.55%) it currently ranks as the biggest gainer ever in the S&P 500. Shares of the GPU maker have soared more than 150%. I don’t think Nvidia will give up the top spot until the end of 2024.

On August 12th, I predicted that Nvidia stock would rise another 20% or more by the end of the year. My prediction has almost come true already. One reason is that some of the factors weighing on Nvidia aren’t as worrisome now.

More importantly, however, Nvidia has yet to announce its fiscal 2Q25 results. The company is scheduled to provide its Q2 update on August 28. I fully expect another explosive quarter for Nvidia to fuel investor optimism.

I also think the company will reassure investors about when its Blackwell-based chips will be released. Blackwell is Nvidia’s newest GPU architecture that CEO Jensen Huang believes will be the most successful product in the company’s history.

2. Super Micro Computer

Super Micro Computer (SMCI 1.39%)commonly referred to as Supermicro, ranks as the S&P 500’s second-best performing stock this year. Shares of the information technology infrastructure company rose about 115%. I expect Supermicro to add to this gain in the next few months.

Will Supermicro’s upcoming 10-for-1 stock split on October 1 provide a big catalyst? Maybe, but I wouldn’t count on it. Even if there is a boost from the breakup, it might just be temporary.

The smarter reason to look for continued strong performance from Supermicro is the artificial intelligence (AI) tailwind. In the fourth quarter of Supermicro’s fiscal year 2024, the company generated revenue of $5.31 billion. It projects revenue of between $6 billion and $7 billion in Q1 fiscal 2025. That’s 22 percent growth in just three months — and much of that comes from AI-related demand.

Supermicro could also benefit from Nvidia’s release of its Blackwell chips. Even if there is a worse-than-expected delay with this release, however, Supermicro CEO Charles Liang doesn’t think his company will be affected too much by the general demand for its liquid cooling solutions.

3. Eli Lilly

I’ll go out on a limb with my next pick. Three S&P 500 stocks are outperforming Eli Lilly (LLY -0.15%) in addition to Nvidia and Supermicro. However, I have a hunch that this big pharma stock could leapfrog them to end the year as the No. 1 stock. 3 in the S&P.

My bullish view on Lilly is largely based on my high expectations for the company’s tirzepatide franchise. In the US, the drug is marketed under the brand name Mounjaro to treat type 2 diabetes and under the brand name Zepbound to treat obesity. Outside the US, it is marketed as Mounjaro for both indications. Whatever you call it, tirzepatide is already a hugely successful drug. Mounjaro posted sales of $3.09 billion in Q2, while Zepbound made $1.24 billion.

Investors also know that Lilly may have more indications for tirzepatide on the way. The US Food and Drug Administration (FDA) could make a decision approving the drug in the treatment of obstructive sleep apnea and obesity by the end of 2024. Lilly plans to apply for regulatory approvals for tirzepatide in the treatment of heart failure with ejection fraction preserved (HFpEF) and obesity later this year.

We can’t overlook Lilly’s recently FDA-approved Alzheimer’s drug, Kisunla. I’m not looking for mind-blowing sales numbers from therapy in the second half of the year. However, more regulatory approvals outside the U.S. are possible by the end of 2024. And if U.S. sales are better than expected, Kisunla could provide more reason for investors to be excited about the company’s growth prospects. Lily.