NVIDIA is a shoo-in for the Dow post stock split
) announced a ten-for-one stock split. The split, which will be distributed at the close on June 7th, will give shareholders ten shares in exchange for each one share they own as of the June 6The Dow is a price a price-weighted index, meaning stocks with higher prices have a bigger impact on the index. With NVIDIA’s stock over $1000 per share currently, this would give it too much of a weighting in the index.
However, reading the DJIA methodology language carefully hints that NVIDIA will, in fact, be added, and the announcement can come at any time.“While stock selection is not governed by quantitative rules, a stock typically is added only if the company has an excellent reputation, demonstrates sustained growth and is of interest to a large number of investors. Since the indexes are price weighted,.
NVIDIA is expected to post revenue of $111.38 billion this year versus $52 billion for Intel. NVIDIA’s growth is also astonishing versus Intel’s lack of growth. NVIDIA’s revenue is expected to grow by 83% this year, while Intel’s is expected to fall by 5%.
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