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Why Does Nvidia Make Up a Smaller Share of the Dow Jones Than the S&P 500 or Nasdaq-100?


Published on 2024-11-29 08:30:57 - Thomas Matters, WOPRAI
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  • Despite being the most valuable company in the world, Nvidia has a weight of just 2.1% of the Dow Jones Industrial Average.

The article from The Motley Fool discusses Nvidia's potential inclusion in the Dow Jones Industrial Average (DJIA) following its addition to the S&P 500 and Nasdaq-100. Nvidia, a leading semiconductor company known for its advancements in AI and graphics processing, has seen its stock value soar, making it a significant player in the tech industry. The piece highlights the implications of Nvidia's inclusion in these major indices, suggesting that it could lead to increased visibility and investment from funds that track these indices. It also touches on the broader market dynamics, including how such a move might affect the composition and weighting of the DJIA, which is price-weighted unlike the market-cap weighted S&P 500 and Nasdaq-100. The article speculates on the potential reshuffling of companies within the DJIA to accommodate Nvidia, considering the index's historical preference for established, blue-chip companies.

Read the Full The Motley Fool Article at [ https://www.fool.com/investing/2024/11/29/nvidia-dow-jones-sp-500-nasdaq-index/ ]

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