Nvidia replaces Intel in the Dow Jones Industrial Average, remains a top growth stock pick.

From Nasdaq: 2024-11-29 18:05:00

Nvidia joined the Dow Jones Industrial Average, replacing Intel, with its soaring stock price up 910% in the past year. Despite concerns about the AI megatrend slowing, Nvidia continues to deliver exceptional sales and earnings growth, making it a top growth stock pick for investors.

Investing in Nvidia means betting on its leadership in AI and continued earnings growth. With its stock price up 130.7% and earnings up 112.6% in the last year, Nvidia’s valuation remains reasonable. Analysts expect 48% earnings growth in fiscal 2026, supporting potential stock gains.

Consider investing in a Dow ETF like SPDR Dow Jones Industrial Average ETF Trust for exposure to top companies with less Nvidia allocation. The Dow offers better value and income compared to other indexes, with a 26.2 P/E ratio and 1.7% yield, making it an attractive option for investors.

Nvidia’s remarkable earnings growth and position as the most profitable company in the world make it a compelling investment, but it may not suit all risk profiles. Buying a Dow ETF or exploring low-cost ETF options like Vanguard Value ETF may provide exposure to other strong companies while managing risk.

The Motley Fool Stock Advisor team identified 10 top stocks for investors, but Nvidia wasn’t among them. Their recommendations have historically outperformed the S&P 500, offering a blueprint for investment success. Consider their insights before deciding to invest in Nvidia or other stocks.



Read more at Nasdaq: Better Buy Now: Nvidia or the Other 29 Stocks in the Dow Jones Industrial Average?