Nvidia – finally: moving into the Dow Jones. Intel is being kicked out

Nvidia (NASDAQ:NVDA) is moving into the Dow Jones, replacing Intel (NASDAQ:INTC) after 25 years
 
AI chip giant Nvidia has reached another significant milestone: from Friday this week, the company's shares will be listed on the renowned Dow Jones index. This means that Nvidia will replace the long-standing industry leader Intel, which will have to leave the index after 25 years. In addition to Intel, the chemical company Dow will also leave the US leading index. They will be replaced by Nvidia and the coating specialist Sherwin-Williams (NYSE:SHW). This change will take effect on 8 November before the start of trading, as announced by the index provider S&P Dow Jones Indices.
 
Nvidia's impressive growth story and Intel's decline
 
Nvidia's market capitalisation has increased by 900 per cent to a remarkable $3.3 trillion over the last two years. Intel, on the other hand, has seen its market cap decline by almost 20 per cent to around $100 billion. This year alone, Intel's shares have fallen by 54 per cent, making it one of the weakest stocks in the Dow Jones. Nvidia shares, on the other hand, have made all critics look bad.
 
Is the Nvidia share still too expensive?
 
Given all the risks associated with such a sharp rise as that of the Nvidia share, we believe the opportunities are significantly higher.
 

 
The stock was once again able to adhere exactly to our forecast (please also see our analyses on our website) and has risen significantly further. We are now likely to see a minor correction, which could be over soon. The ideal range for a turnaround is in the purple box between $133.12 and $129.60. Perhaps the last low was enough for the stock.
 
In the medium to long term, we expect the upward trend to continue into the two red boxes. In the long term, prices above $200 are even possible.
 
However, should the stock now fall below $129.60, we have to assume that it will continue to fall slightly further to the zone of the purple circle at $117.59 to $110.27. However, a sustained upward trend reversal can be expected there at the latest. That would even be a stroke of luck, because it would allow us to buy Nvidia very cheaply. A strong increase can also be expected after that.
 
Intel, once a leader in semiconductor production, recently had to cede its position to Taiwanese competitor TSMC. In addition, the company missed out on the boom in generative artificial intelligence and decided against investing in OpenAI, the developer of ChatGPT. According to Susannah Streeter of Hargreaves Lansdown (LON:HRGV), Intel's departure from the Dow Jones represents a further setback for the company, which is currently struggling with restructuring and a loss of confidence.
 
And Big Tech? Is the rally continuing?
 
In our view, it would be a mistake to simply assume that the stocks of the big tech giants Google Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Meta, Microsoft (NASDAQ:MSFT) and Nvidia will all rise. We see a very heterogeneous picture. Some, such as Nvidia, will continue to rise, but others are likely to enter into stronger corrections. We are closely monitoring this on our website so that everyone can prepare for the risks, but also for the opportunities.
 
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