NVDA Stock Alert: This Analyst Says Nvidia Could Be 15% of the S&P 500

NVIDIA (NASDAQ:NVDA) shares are a hot topic among traders on Monday after analysts at Evercore ISI made a bold prediction about artificial intelligence (AI) and technology companies.

According to the company’s analysts, NVDA could grow to a point where it accounts for 15% of S&P500. This claim comes after the company’s shares have seen significant growth since the beginning of the year, with NVDA stock up 155.3% year-to-date.

If Nvidia took up 15% of the S&P 500, it would be the largest company in the index. To put that claim in perspective: Apple (NASDAQ:AAPL) holds 6.6% of the index, while Microsoft (NASDAQ:MSFT) holds 7%. NVDA’s current weight in the S&P 500 is about the same as AAPL.

Here is what Evercore ISI analyst Mark Lipacis said about NVDA in a note to clients obtained by I’m looking for Alpha.

“We have observed that ecosystem players have a larger weighting in the S&P 500 (SP500) in each new computing era. Based on this development and NVDA’s dominant position as a provider of parallel chip, software, hardware and network processing, we do not consider it impossible that NVDA can ultimately achieve a 15% share of the S&P 500.”

NVDA stock movement on Monday

NVDA shares have gained 1.8% since Monday afternoon. Investors should also keep in mind that NVDA shares just went through a stock split. This happened on a 10-for-1 basis. This lowers the share price and makes it easier for more investors to acquire shares of the company. At the time of writing, NVDA is trading at $123 per share.

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At the time of publication, William White had no position (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing guidelines.

Article printed by InvestorPlace Media, https://investorplace.com/2024/06/nvda-stock-alert-this-analyst-says-nvidia-could-become-15-of-the-sp-500/.

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