NVIDIA (NASDAQ: NVDA) has had a successful week, announcing a 10 for 1 stock split that has driven its shares higher. This move has sparked speculation that Nvidia may replace Intel in the Dow Jones Industrial Average, positioning the tech company for even more growth in the second half of 2024.
Nvidia’s stock has risen by 12% over the past week, with momentum from strong first-quarter earnings and excitement surrounding the stock split expected to continue driving the stock price upwards. The question on many investors’ minds is whether Nvidia will become a part of the Dow Jones Industrial Average.
The decision to add a stock to the Dow is made by the S&P Dow Jones Indices Index Committee, which looks for companies with a strong reputation, sustained growth, and appeal to a large number of investors. Nvidia, with its high-growth AI business and positive analyst ratings, is seen as a strong contender for inclusion in the index.
On the other hand, Intel, Nvidia’s competitor, has been facing challenges that have impacted its stock performance. Intel’s shares have been declining, and it is facing trade restrictions that could further impact its growth. In contrast, Nvidia’s dominance in AI has made it a preferred choice among investors and analysts.
Overall, it seems likely that Nvidia may eventually replace Intel in the Dow Jones Industrial Average, given its strong performance and growth prospects compared to its competitor. Investors are advised to keep a close eye on Nvidia’s stock for potential inclusion in the index.
As of publication, the author does not hold any positions in the securities mentioned in the article. The opinions expressed are those of the author and do not reflect those of InvestorPlace.com.
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https://investorplace.com/2024/05/will-nvidia-stock-join-the-dow-after-its-10-for-1-split-some-analysts-think-so/