Analysts reset Nvidia stock price targets split Dow entry talk

Nvidia CEO sees $1 trillion in value added in 74 days. Shares drop ahead of trading after stock split. Analysts revise targets.

Nvidia CEO Jensen Huang has witnessed an extraordinary increase in the company's value, with more than $1 trillion added over just 74 trading days. The excitement surrounding Nvidia continues as the company embarks on its first day of trading post a 10-for-1 stock split, accompanied by a flurry of price-target adjustments from Wall Street analysts.

As Nvidia shares dipped slightly on Monday, the anticipation for its split-adjusted trading day on the Nasdaq grew. With an opening bell price of $120.38 per share, Nvidia is set to make waves in the market. The decision to split the stock came after a stellar fiscal-first-quarter earnings report, showcasing strong sales and a promising outlook for the Blackwell processors, expected to power AI systems for Meta Platforms, Microsoft, and Amazon.

The stock split aimed to make ownership more accessible to employees and investors, leading to a wave of price-target changes by analysts. Speculation is rife that Nvidia could potentially be added to the Dow Jones Industrial Average, given its newfound price level aligning with other benchmark stocks. Analysts have varying opinions on Nvidia's future, with Morgan Stanley predicting price cuts to fend off competitors and Susquehanna highlighting ongoing demand for Nvidia's legacy Hopper chips.

Barclays sees increased sales potential for Nvidia in sovereign AI demand, predicting a rise in revenue and earnings. With shares trading slightly lower on Monday, the possibility of Nvidia joining the Dow industrials gains traction, potentially replacing Intel. However, the addition of Salesforce to the index in recent years may prompt officials to carefully consider any changes.

The dynamic nature of the stock market and the tech industry keeps investors on their toes, with Nvidia's growth trajectory and potential inclusion in the Dow adding a layer of excitement to the mix. As the company continues to innovate and expand its reach in the AI sector, the future looks bright for Nvidia and its shareholders.