The S 500 is up 23% this year after a tough performance in 2022 when it fell by 19%. The success of growth stocks has been a key reason why the broad index has been doing so well. And three of the best-performing ones in the S this year have been Nvidia (NASDAQ: NVDA), Meta Platforms (NASDAQ: META), and Royal Caribbean Cruises (NYSE: RCL). But can these scorching-hot stocks still be good buys heading into the new year?

Nvidia has been the biggest benefactor from the emergence of artificial intelligence (AI) this year. Demand for its AI chips has been through the roof, and data-center revenue has been flourishing as well. Last quarter, which ended on Oct. 29, the company posted record data-center revenue of $14.5 billion; it rose 279% year over year. Nvidia's overall sales of $18.1 billion were more than three times the $5.9 billion it reported a year ago.

Given its strong results, it may not be surprising that the stock itself more than tripled in value this year. The big question for investors, however, is whether this still is a good buy heading into 2024. At around 65 times earnings, the stock has an inflated valuation.

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Source Fool.com