The momentum from a powerful fourth quarter continued into 2024 because the S&P 500 notched one of the best first quarter since 2019, returning 10.1% through March 28 (U.S. markets were closed on March 29 for Good Friday).

The stock markets exceeded most expectations as many analysts and market watchers were calling for muted growth while some economists were talking a couple of possible recession. Nonetheless, at the top of March, all three of the key stock indexes were up big, and every set recent all-time highs within the quarter.

The S&P 500 finished the quarter up 10.1% at 5,254, while the Nasdaq Composite rose 9.1% in Q1 to 16,379. The Dow Jones Industrial Average gained 5.6% within the quarter to hit 39,807, while the Russell 2000 rose 4.8% to 2,124.

Let’s have a look at a number of the top-performing stocks in the primary quarter.

NVIDIA continues its run

The highest stock on the Nasdaq and the second-best performer on the S&P 500 last quarter was semiconductor juggernaut NVIDIA (NASDAQ:NVDA). NVIDIA skyrocketed about 83% in the primary quarter to hit $903 per share — adding to its 239% increase in 2023. NVIDIA was buoyed by excellent earnings results, because it set a revenue record with $2 billion within the fourth quarter and saw its net income climb 765% yr over yr.

NVIDIA’s outlook for Q1 was even higher because it expects to have one other record quarter for revenue. On top of that, it released a recent chip, the Blackwell generative artificial-intelligence (AI) chip, which is its strongest yet. NVIDIA is showing no signs of slowing down, and it remains to be at an affordable forward P/E.

Nonetheless, one of the best large-cap stock within the quarter was Super Micro Computer (NASDAQ:SMCI), which has one huge thing in common with NVIDIA: AI. While NVIDIA makes the chips which might be equipped to handle complex AI-computing tasks, Super Micro Computer, commonly called Supermicro, builds the servers that may accommodate high-performance computing and AI at data centers and for cloud computing, amongst other markets.

Super Micro Computer returned a whopping 242% in the primary quarter alone, trading at around $1,010 per share at the top of March. The stock received a lift from the corporate’s earnings report, which showed that its net sales had doubled yr over yr to succeed in $3.6 billion for the quarter ended Dec. 31. Meanwhile, Supermicro’s net income climbed 68% to $296 million or $5.10 per diluted share.

Guidance for the corporate’s fiscal third quarter ended March 31 calls for $3.7 billion to $4.1 billion in net sales and diluted EPS of $4.79 to $5.64, so the expansion shouldn’t be slowing down. Supermicro has a trailing P/E of 81 but a more reasonable forward P/E of 33.

Disney bounces back

Walt Disney Co. (NYSE:DIS) has had a difficult few years, but it surely was one of the best performer on the blue-chip Dow Jones Industrial Average in the primary quarter, returning 35.4% through March 28 to succeed in about $122 per share. Within the quarter, Disney received a lift from its strong Q4 earnings report, wherein significant expense reductions lifted its earnings by 49% yr over yr to $1.04 per share.

More expense reductions are expected in 2024, as Disney has targeted a 20% earnings increase in fiscal 2024 and projected that its struggling streaming business will likely be profitable by the top of the yr.

Also this past quarter, Disney announced the launch of a sports streaming service with Fox and Warner Bros Discovery that’s slated to launch in the autumn. The corporate also acquired a $1.5 billion stake in Epic Games, which runs the favored video game Fortnite.

Meanwhile, Disney has been coping with a proxy fight from activist investor Nelson Peltz of Trian Fund Management. Peltz has been pushing for changes at Disney for greater than a yr and is trying to achieve to seats on the board.

The outcomes of the board vote will likely be announced on Wednesday at Disney’s annual meeting, and as of Tuesday, reports indicate that Trian’s candidates, which include Peltz, were losing. Stay tuned for the outcomes tomorrow because the meeting could possibly be a catalyst for the corporate and its stock.

Thus, the primary half of the yr was presupposed to be difficult with things improving within the second half. Now waiting for rate cuts within the second half of the yr, the market could also be trending higher in 2024 than many experts thought.