Nvidia (NASDAQ: NVDA) stock soared 82.5% in the first quarter of 2024. (The market's quarter ended on Thursday, as U.S. financial markets were closed on Friday for the Good Friday holiday.) That performance made the artificial intelligence (AI) chip leader the second-best performer on the S 500 index, behind only Super Micro Computer, a server specialist that's also benefiting from strong demand for AI products and services.

For context, in the first quarter, the S 500 gained 10.2%, and notched an all-time closing high on Thursday, while the tech-heavy Nasdaq Composite index gained 9.1%.

The main catalyst behind Nvidia stock's amazing performance so far in 2024 can be stated in two words: artificial intelligence. More specifically, it's generative AI, which has significantly expanded the potential applications of AI. This tech enables users to quickly generate new content of various types based on a variety of input categories, such as images and sounds.

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Source Fool.com