Wed Nov 06 15:00:00 UTC 2024: ## Nvidia’s Dow Inclusion Sparks Profit-Taking, Despite Strong Momentum

**Nvidia (NVDA)** is currently experiencing a surge in its stock price, fueled by strong market performance and its upcoming inclusion in the Dow Jones Industrial Average (DJI). This development, expected to drive further gains as index funds buy NVDA shares, is being seen as a prime opportunity for profit-taking by some investors.

One such investor, known as **The Value Portfolio**, has assigned a **Strong Sell** rating to NVDA shares, arguing that the company’s current valuation is unsustainable. The investor highlights the potential for **AMD** to erode Nvidia’s market share, pointing to **Meta**’s recent use of AMD servers for running open-source models. This suggests that Nvidia’s dominance may not be as secure as previously thought.

The Value Portfolio also expresses concern about Nvidia’s heavy reliance on a handful of large tech clients, who could potentially develop these capabilities themselves, posing a threat to Nvidia’s margins.

This bearish outlook contrasts sharply with the overall positive sentiment on Wall Street, where analysts maintain a **Strong Buy** rating on NVDA shares. The 12-month average price target of **$153.86** suggests a potential 13% gain over the next year.

While Nvidia continues to dominate the data center market and has already sold out its new Blackwell chipsets for the upcoming year, The Value Portfolio believes the current price bump is a prime opportunity to exit the stock.

**Investors are advised to conduct their own due diligence before making any investment decisions.**

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