Shares of chip maker Nvidia (NASDAQ:NVDA) are up in today’s trading following its 10-for-1 stock split. This has caused multiple analysts to weigh in on the company. Adding to the commentary was Evercore ISI via five-star analyst Mark Lipacis, who suggests Nvidia could capture a 15% weight of the S&P 500 (SPX). He said that Nvidia’s potential to become a significant part of the S&P 500 is based on historical trends where dominant tech companies have increased their S&P 500 weightings over time.
Currently, Nvidia has a similar weighting to Apple (AAPL) at roughly 6.6% and Microsoft (MSFT) at approximately 7%. Lipacis pointed out that ecosystem players tend to make up a larger share of the S&P 500 with each computing era. This means that as we enter the “Parallel Processing” era, Nvidia could eventually reach a 15% weighting, which equates to a $6.75 trillion market cap at current levels.
It’s worth noting that, so far, Lipacis has enjoyed an 80% success rate on NVDA stock, with an average return of 105% per rating.
What Is the Target Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 37 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 206% rally in its share price over the past year, the average NVDA price target of $122.69 per share implies 1.13% upside potential.
