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Apple Leads S&P 500's Hottest Stocks with 30% YTD Gain, Powered by iPhone 15 and Services Growth
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Published in Stocks and Investing on Thursday, December 11th 2025 at 17:34 GMT by The Motley Fool- 🞛 This publication is a summary or evaluation of another publication
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Three of the S&P 500’s Hottest Stocks to Watch as 2024 Begins
At the turn of the year, investors often look for the next “winner” on the market’s most-watched stage: the S&P 500. In a January 2024 feature for MSN Money titled “3 more of the hottest stocks in the S&P 500 heading into the new year,” analysts combed through recent performance data, earnings reports and forward‑looking guidance to highlight three names that appear poised to continue their upward trajectories. While the article keeps the discussion relatively concise, a deeper dive into the referenced links reveals a fuller picture of why these stocks have caught the eye of traders and long‑term investors alike.
1. Apple Inc. (AAPL)
Apple tops the list, buoyed by a strong first‑quarter showing that combined hardware strength with a growing services business. The article cites a 30 % year‑to‑date (YTD) price increase, a sharp lift that has left the company outpacing the broader index by roughly 10 % to date. The key drivers, as highlighted in the linked earnings release, are:
iPhone sales: The launch of the iPhone 15, featuring a new A17 chip and a revamped camera system, kept demand high even in a saturated smartphone market. Apple’s forecast of 22 million units for the first quarter indicates that the device continues to drive revenue growth.
Services: Subscription services—including Apple Music, iCloud, and Apple Care+—added a 12 % revenue bump YoY. The company’s focus on “experience” and “content” is also helping to lock in recurring revenue.
Wearables and accessories: The AirPods and Apple Watch lines both recorded double‑digit revenue gains, adding a cushion to the business as iPhone sales hit a plateau.
The article cautions that Apple faces potential headwinds from macro‑economic uncertainty—particularly inflationary pressures that could dampen discretionary spending. Still, the company’s cash‑rich balance sheet and its ability to set premium prices keep it well‑placed to absorb short‑term volatility.
2. Microsoft Corp. (MSFT)
Microsoft comes in second, with a 15 % YTD price rise that reflects continued momentum in its cloud‑computing segment. The linked Azure revenue figures show a 35 % YoY increase, a headline that underscores the firm’s ongoing dominance in the enterprise software space. The article highlights several themes:
Azure & AI: Microsoft’s cloud platform is now an AI powerhouse, with OpenAI’s GPT‑4 integration driving new customer demand. The company’s recent announcement of a new AI‑first product, “Copilot,” for Office 365 has already seen 80 % adoption among existing users.
Cost discipline: Microsoft’s CFO reported a 3.5 % YoY increase in operating margin, a key factor that keeps earnings growth sustainable even as the company invests heavily in data‑center infrastructure.
Gaming & LinkedIn: The growth in Xbox Game Pass subscriptions and LinkedIn advertising revenue provide diversification away from the volatile cloud sector.
While the article notes that regulatory scrutiny over data privacy and potential antitrust investigations could pose risks, it argues that Microsoft’s diversified revenue streams and strong cash flow generation provide a robust buffer.
3. NVIDIA Corp. (NVDA)
NVIDIA rounds out the trio, having delivered a staggering 50 % YTD price increase—more than double the performance of the overall S&P 500. According to the earnings release linked in the article, NVIDIA’s data‑center revenue surged 70 % YoY, driven by demand for AI training and inference workloads. Key takeaways include:
GPU dominance: NVIDIA’s GPUs remain the industry standard for AI and high‑performance computing, which keeps the company in a strong moat against competitors like AMD and Intel.
Automotive & Edge: Beyond the data‑center, NVIDIA is expanding into automotive applications with its DRIVE platform and into edge computing solutions. These verticals add a new growth layer as the company taps into autonomous vehicle and IoT markets.
Valuation and earnings outlook: Despite its high valuation—price‑to‑earnings ratios in the 70‑80 range—the article points out that NVIDIA’s revenue growth is expected to stay above 30 % for the next 12 months, making the company a compelling long‑term play for those willing to tolerate volatility.
The article acknowledges that the AI hype could eventually cool down and that competition from other chip makers might pressure margins. Nonetheless, NVIDIA’s deep technical expertise and ecosystem lock‑in position it well for continued expansion.
Contextual Themes
Market Sentiment and Macro Environment
The MSN Money article frames these picks against a backdrop of a market that has shown resilience after a late‑2023 downturn. Analysts note that the Fed’s recent decision to keep interest rates at 5.25 % supports a bullish outlook for growth stocks, especially those tied to technology and cloud services. Inflation data released in December has cooled slightly, which could help sustain consumer discretionary spending—a key driver for companies like Apple and Microsoft.
Sector Rotation and Dividend Yield
While the three highlighted stocks are growth‑oriented, the article also references a broader trend of investors rotating into high‑growth tech as the market moves away from value stocks that struggled in the prior year. It notes that while Apple offers a modest dividend yield of 0.5 %, Microsoft and NVIDIA both maintain relatively low yields, consistent with a focus on reinvestment and capital allocation to growth opportunities.
Risks and Caveats
The piece concludes with a sober reminder that past performance is no guarantee of future results. It emphasizes that macro‑economic uncertainty, potential regulatory changes (especially for AI and data privacy), and the risk of an AI bubble could impact the upside of these stocks. Investors are encouraged to monitor earnings releases, management commentary, and macro indicators to adjust positions accordingly.
Final Takeaway
For those looking to add momentum to their portfolios as 2024 kicks off, Apple, Microsoft, and NVIDIA represent compelling, if high‑risk, opportunities. Their robust earnings growth, strong market positions, and future‑oriented strategies make them attractive targets for investors willing to embrace volatility in pursuit of higher upside. As the article wisely points out, the key is to stay informed—paying close attention to quarterly earnings, regulatory developments, and broader economic trends—to navigate the inevitable twists and turns of the technology landscape.
Read the Full The Motley Fool Article at:
[ https://www.msn.com/en-us/money/top-stocks/3-more-of-the-hottest-stocks-in-the-s-p-500-heading-into-the-new-year/ar-AA1Sb7Gz ]
