AI chipmaker Nvidia (NVDA) has officially joined the Dow Jones Industrial Average (^DJI). On Friday, the chipmaker hit $147.71 per share, a 9% gain in the last business week. The company joining the Dow is a historic step for the company and AI industry, coming shortly after Nvidia joined the Mag-7.
This week, Nvidia overtook Apple (AAPL) as the worldâs most valuable company. Indeed, its $3.6 trillion market cap again moved ahead of Appleâs $3.4 trillion. Earlier in the week, Nvidia successfully booted Intel from the Dow Jones after a 25-year run. Today, the chip maker replacing Intel was made official.
âA lot of us on Wall Street talk about the S&P 500 (^GSPC) and the Nasdaq (^IXIC). But most of America knows the Dow,â said Ritholtz Wealth Management chief market strategist Callie Cox in an interview with Yahoo Finance Friday, âSo a lot of America is going to be introduced or at least have to get a little bit more familiar with Nvidia, and all of what Nvidia means in this AI story.â
Nvidia Continues To Climb
Nvidia has thrived throughout 2024 surging beyond $140 and eyeing continued gains through the end of the year. The company is currently looking to be the first to reach a $4 trillion market cap. Moreover, analysts have consistently revised their predictions for the companyâs stock this year, projecting higher and higher gains.
âThe index changes were initiated to ensure a more representative exposure to the semiconductors industry,â the S&P wrote in a press release. The questions will now target Intelâs ability to weather the storm. Down 54% this year, the CPU corporation has very little reason to be optimistic. Still, some experts are not ruling out a 20% boost and return to form for the stock. In recent years, it has shown a propensity to be volatile and eventually finds its way back to respectability.
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However, we currently sit in the jump-start of the AI age, and chipmakers/AI firms like Nvidia are only going to gain further into 2025. In a bullish stock market following the US election, it is ever likely that a $4T valuation is coming soon for Nvidia, and its time in the Dow index will last an extended period.
