That could be an ideal candidate, particularly since IBM is in the process of spinning off its Global Technology Services division at the end of the year. IBM's Dow weighting is right around the same level as what Nvidia's would be. Presumably it would replace another tech stock. So what could it replace? There are choices. At that level, it would be right in the middle of the pack in terms of its index weighting. But at a post-split $150 price – the story is very different. At Nvidia's current pre-split price, it wouldn't be very feasible for it to join the Dow, since it would have a very disproportionate impact on the index. That's because the Dow is a price-weighted index, giving higher-priced stocks more influence. Just like with Apple a few years ago, could this stock split finally open the door for the company to to join the Dow Jones Industrial average ? Currently, UnitedHealth - which has a share price above $400 - has the greatest weighting in the Dow. Nvidia announcing a 4-for-1 stock split on Friday could have some significant ramifications.
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