Removing either Intel or Cisco and replacing it with Nvidia would also increase tech's weighting in the Dow. The last potential alternative would be to boot out the least influential stock in the index, Cisco, which is currently at $52. The S & P Dow Jones index committee could also choose to do a chip swap – Nvidia for Intel, which is only a $56 stock. That could be an ideal candidate, particularly since IBM is in the process of spinning off its Global Technology Services division at the end of the year. IBM's Dow weighting is right around the same level as what Nvidia's would be. Presumably it would replace another tech stock. So what could it replace? There are choices.
At that level, it would be right in the middle of the pack in terms of its index weighting. But at a post-split $150 price – the story is very different. At Nvidia's current pre-split price, it wouldn't be very feasible for it to join the Dow, since it would have a very disproportionate impact on the index. That's because the Dow is a price-weighted index, giving higher-priced stocks more influence. Just like with Apple a few years ago, could this stock split finally open the door for the company to to join the Dow Jones Industrial average ? Currently, UnitedHealth - which has a share price above $400 - has the greatest weighting in the Dow. Shares are up nearly 800% in the last five years and up more than 5,800% in the last 10 years, rewarding recent investors as well.Nvidia announcing a 4-for-1 stock split on Friday could have some significant ramifications. NVDA Price Action: Shares have traded between $115.66 and $346.47 over the last 52 weeks. Investing $1,000 in Nvidia at its IPO would have created some millionaires, assuming they held onto shares for that long. The 83.33 shares would total 3,999.84 after the stock splits.īased on a share price of $264.95 at the time of writing, the $1,000 investment in Nvidia at the time of its IPO would now be worth $1,059,757.61. Since the IPO, Nvidia has had several stock splits that have increased the number of shares held by existing shareholders. A $1,000 investment would have been able to buy 83.33 shares. 22, 1999, with shares offered at $12 each. Investing $1000 In NVDA: Nvidia held its IPO on Jan. Related Link: Benzinga Asks: Which Company Could Join The $1 Trillion Market Cap Club Next?
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