Nvidia (NVDA) is getting all the attention for fueling AI riches. But another newcomer to the S&P 500 is actually a much better bet.
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If you invested $10,000 in January in the top-performing stock in the S&P 500 and reinvested that in each month’s top performer — including Micron Technology (MU), a memory-chip firm based in Boise, Idaho — in March, you’d have $39,643 now, says an Investor’s Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge.
Super Micro Computer (SMCI), in the meantime, ruled with top gains in the S&P 500 in January and February.
That’s an impressive three-month gain of nearly 300% between the two stocks. It’s quite a feat given the S&P itself is up an impressive 6.8% so far this year. The same $10,000 invested in the S&P 500 would be worth just $10,680 now. That’s a gain of just $680. The S&P 500 gained 3.1% in March, adding to its 5.2% advance in February.
Will The S&P Keep Rolling?
Hindsight is 20-20. And, clearly, few if any investors could have picked the top stock in each of the past three months, as it’s not a repeatable strategy. But the staggering numbers this year remind investors that amazing gains can be scooped up by diligent investors who keep buy lists handy for when the S&P 500 starts to rally.
In fact, following two months of big gains, the S&P offered many ways to make money. The S&P 500 itself rose 3.1% in March. And more than 80% of the stocks in the S&P 500 rose during March. And of those, five stocks jumped more than 20% in just one month.
But Micron was the standout in March. Shares shot up more than 30% in the month. Investors have high hopes for 2024. The company is seen making 69 cents a share in 2024. That’s up from a loss of $4.45 a share in 2023.
What’s Coming Next For The S&P 500 In April?
The big question, though, is: Will the S&P 500’s winning streak continue in April 2024? Historically, the odds look decent.
April is the second-best month of the year for the S&P going back to 1950, says the “Stock Trader’s Almanac.” The S&P 500 rises 1.5% in April on average. And it rose nearly 72% of the time. Plus, the best six months of the year for stocks ends in April.
We’ll see if Super Micro Computer, a new addition to the S&P 500, can return to the top in April.
How To Turn $10,000 Into $39,643 In Three Months
| Month | Top S&P 500 stock | Symbol | Monthly gain | Sector | S&P 500 monthly change | Starting balance | Cumulative value of $10,000 investment in January reinvested in best stock each month |
|---|---|---|---|---|---|---|---|
| January | Super Micro Computer | (SMCI) | 86.3% | Information Technology | 1.6% | $10,000 | $18,631 |
| February | Super Micro Computer | (SMCI) | 63.5% | Information Technology | 5.2% | $18,631 | $30,469 |
| March | Micron Technology | (MU) | 30.1% | Information Technology | 3.1% | $30,469 | $39,643 |
Sources: S&P Global Market Intelligence, IBD
Follow Matt Krantz on X (Twitter) @mattkrantz
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