Nvidia (NVDA) has officially joined the Dow Jones Industrial Average, solidifying its position in the artificial intelligence era. Despite a decline in chip stocks last Friday, Nvidia saw a 9% weekly gain and overtook Apple as the world’s most valuable company.
The tech giant’s inclusion in the Dow marks an opportunity for Americans to become more familiar with Nvidia and its significance in AI. According to Ritholtz Wealth Management chief market strategist Callie Cox, “most of America knows the Dow.”
The AI chip market is expected to grow 99% in 2024 and another 74% next year, according to International Business Strategies. Analysts recommend buying Nvidia stock, predicting a price of $149.38 over the next 12 months.
However, investors are also cautious about the impact of high tariffs on Chinese goods and trade tensions under Trump’s second term. Nvidia manufactures its chips in Taiwan but uses components from China. The company is set to report quarterly earnings on November 20, amid uncertainty surrounding additional China restrictions and CHIPS Act funding.
Experts warn that disruptions to the global supply chain could affect Nvidia, as they would also impact TSMC, a major chip manufacturer. The AI chip market’s growth prospects remain promising, but investors should be prepared for potential challenges ahead.
Source: https://finance.yahoo.com/news/nvidia-the-worlds-most-valuable-company-has-officially-joined-the-dow-175854712.html