NVIDIA is number 1 in the world for the first time! What should I look out for next? More purchases by the world's largest ETFs and adoption of the Dow Jones Average?!

6/18 (Tue), US Eastern Time $NVIDIA(NVDA.US)$Stocks showed a sharp rise of over 4% at one point, and until now they have occupied the top position in market capitalization $Microsoft(MSFT.US)$I pulled it out. What is the total market value of NVIDIAApproximately $3.34 trillion on a closing price basisIt became. Microsoft is in 3rd place with $3.32 trillion $Apple(AAPL.US)$The total market value of was 3.29 trillion dollars.

What should I look out for next?
① Mass purchases of NVIDIA shares due to the rebalance of the world's largest high-tech ETF
It is the world's largest high-tech ETF boasting an asset scale of 71 billion dollars and boasts the largest asset management scale $The Technology Select Sector SPDR® Fund(XLK.US)$It is expected that the rebalance will be implemented this week. Due to the sharp rise in NVIDIA's stock price, ETFsBuy NVIDIA shares in large quantities of at least $10 billionand at the same timeSold nearly $11 billion of AppleIt is expected to do so.

Currently, the weight of both Microsoft and Apple ETFs is about 22%, and NVIDIA is 6%.

Matthew Bartolini, the person responsible for research in the Americas at SPDR, stated in a recent article that “according to the new calculation, Microsoft is at the top of the index, followed by NVIDIA and Apple.”

XLK is lagging behind the S&P 500 Index, which is a widely used benchmark. Whereas the S&P 500 index has risen about 34% year to date, XLK has only risen by about 23%.The biggest reason for this difference is the sharp rise in NVIDIAIt is.

② Is the Dow Average close to hiring?
As expectations for higher stock prices spread, observations adopted for the Dow average based on a 10 to 1 stock price split have surfaced. The Dow averageIf you adjust the weight before Triple Witching Day, there is a high possibility that NVIDIA will be adoptedIt is predicted. This Friday, US stocks will have their second Triple Witch Day this year.

Since NVIDIA's stock price had exceeded 1000 dollars before the split, if incorporated into the Dow average, there would be a big divergence in the index. United Health, which has the highest stock price among the constituent stocks of Dow, was about 500 dollars per share, which was half of NVIDIA's stock price. As a side effect of the stock split, it is expected that it will replace Intel, which has the lowest weight.

The selection criteria for the Dow Jones Average constituent stocks include “having received excellent evaluations, showing sustainable growth, and attracting the interest of many investors,” and industry representation is also an important reference item. As one of the world's leading giant chip manufacturers, NVIDIA clearly meets these standards.

According to NVIDIA's estimated daily fluctuation rate, NVIDIA ranks 9th among constituent stocks in terms of the impact of stock splits on the Dow average. NVIDIA's daily fluctuation rate is approximately $3, $Boeing(BA.US)$Ya $Amazon(AMZN.US)$It is comparable to. These two companies are the latest constituent stocks adopted by Dow.

Target price increases one after another
Rosenblatt Securities analyst Hans Mosesman stated that NVIDIA will continue to rise, and next year,The total market value is 5 trillion dollarsIt was decided that there is a possibility that He said NVIDIA's target stock priceSignificant increase from $140 to $200It is a 52% increase compared to Monday's closing price, making it the highest price on Wall Street.

Daniel Ives, an analyst at Wedbush Securities, said in a report that the three companies NVIDIA, Apple, and Microsoft will be in the high-tech industry over the next yearIt will be the focus of a battle with a total market value of 4 trillion dollarsIt showed that point of view. As the fourth industrial revolution progresses and demand from companies and consumers increases, it was pointed out that NVIDIA's GPU chips are essentially the new gold or oil for the high-tech industry.

Source: moomoo, Bloomberg, Reuters
ー MooMoo News Evelyn
This article uses automatic translation for some of its parts