Nvidia Stock Just Did Something It Has Never Done Before. History Says the AI Stock Could Do This Next.

The Dow Jones Industrial Average (DJINDICES: ^DJI) is a price-weighted index that tracks 30 U.S. companies. While inclusion is not based on strict rules, the index committee tends to select stocks that have three qualities: an excellent reputation, sustained growth, and widespread interest among investors.On Nov. 8, semiconductor company Nvidia (NASDAQ: NVDA) did something it has never done before: It joined the Dow Jones Industrial Average. Sherwin-Williams was added to the index at the same time, while chipmaker Intel and specialty chemicals producer Dow were removed.Importantly, while inclusion in the iconic index is validating, it has no bearing on business fundamentals like revenue and earnings. But stocks have generally produced positive returns during their first year in the Dow. Here's what that might mean for Nvidia shareholders.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool