NVDA Stock Alert: This Analyst Says Nvidia Could Become 15% of the S&P 500

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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.

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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.

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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.”

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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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