Nvidia (NASDAQ:NVDA) stock is a hot topic among traders on Monday after Evercore ISI analysts made a bold prediction about the artificial intelligence (AI) and technology company.
According to the firm’s analysts, NVDA could grow to the point that it becomes 15% of the S&P 500. This claim comes after the company’s shares have experienced significant growth since the start of the year. This currently has NVDA stock up 155.3% year-to-date.
Nvidia taking up 15% of the S&P 500 would make it 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 sitting at about the same as AAPL.
Here’s what Evercore ISI analyst Mark Lipacis said about NVDA in a note to clients obtained by Seeking Alpha.
“We have observed that at each successive computing era, the ecosystem players represent a larger weighting of the S&P 500 (SP500). Based on this trajectory, and NVDA’s dominant position as the parallel processing chip+software+hardware+networking play, we think it is not out of the question that NVDA can ultimately become a 15% weight in the S&P 500.”
NVDA Stock Movement on Monday
Shares of NVDA stock are getting a 1.8% boost as of Monday afternoon. Investors will also keep in mind that NVDA shares just underwent a stock split. It did so on a 10-for-1 basis. This lowers the price of the stock and makes it easier for more investors to acquire the company’s shares. As of this writing, NVDA is going for $123 per share.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
