Nvidia’s (NASDAQ:NVDA) 10-for-1 stock split took effect after Friday’s market close, a strategic move designed to make NVDA stock more accessible to a broader range of investors. This decision follows Nvidia stock’s meteoric rise over the past one and a half years. As Nvidia stock continues its remarkable ascent, speculation arises about its potential inclusion in the Dow Jones Industrial Average (DJIA).
The Dow Jones Industrial Average is a stock index that tracks 30 of the largest U.S. companies.
According to a Reuters report, Ben Laidler, a global markets strategist at digital brokerage eToro, expects Nvidia to follow tech giants Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) into the Dow, possibly displacing Intel (NASDAQ:INTC). INTC currently holds the lowest weighting in the index. It’s worth noting that Intel stock is down about 40% year-to-date, reflecting competitive headwinds and ongoing challenges in the traditional CPU market.
Nvidia’s Rise as the Second Most Valuable Company
Nvidia’s stock price has more than doubled so far this year. This growth came after NVDA stock jumped over 239% in 2023. Thanks to the rally in its shares, Nvidia surpassed Apple to become the second most valuable company in the U.S., and recently, its market cap soared past the $3 trillion mark.
This remarkable growth underscores Nvidia’s dominant position in the artificial intelligence (AI) space. The primary catalyst behind Nvidia’s stellar performance has been the robust demand for its chips powering AI applications. The company’s Data Center revenue reached a staggering $22.6 billion in the first quarter of Fiscal 2025, marking a 23% increase sequentially and a phenomenal 427% year-on-year surge. This explosive growth was fueled by robust demand for the NVIDIA Hopper GPU computing platform.
As Nvidia stock continues to rise, the potential of joining the Dow Jones Industrial Average has increased. It remains to be seen whether NVDA will join the DJIA. Meanwhile, let’s look at the Street’s forecast for NVDA stock.
Is NVDA a Good Buy After Split?
Wall Street analysts maintained a bullish outlook on NVDA after the stock split. It has 37 Buys and three Hold recommendations for a Strong Buy consensus rating. The analysts’ price target on NVDA stock is $187.76, implying 54.17% upside potential from current levels.
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