Nvidia in, IBM or Intel out?

Kelly Evans's afternoon commentary & top market stories

VIEW IN BROWSER | SUBSCRIBE FRI, MAY 21, 2021 YOUR AFTERNOON NEWS UPDATE AND MARKET ACTION FROM CNBC AS OF FRI, MAY 21, 2021 • 11:06 ET DJIA 34348.24 +0.77% +264.09 S&P 500 4177.07 +0.43% +17.95 NASDAQ 13532.67 -0.02% -3.07   EDITOR'S NOTE I'm tired today and I don't feel like thinking about crypto (although I *highly* recommend watching the interview that aired just now with MicroStrategy CEO Michael Saylor), or inflation (although we will have a great discussion with Dave Zervos and Steve Liesman about that at 1 p.m.).    So let's talk about Nvidia's stock split! Or rather, let me let our brilliant markets producer Robert Hum talk about it. Why do we care? Because it just miiiight open the door for Nvidia to join the Dow.    Robert: "NVIDIA announced a 4-for-1 stock split this morning. The stock is trading up 3%...topping $600. That would put the stock around $150 post-split, which will be effective July 20. At NVIDIA's current pre-split price, it wouldn't be very feasible for it to join the Dow (UnitedHealth, trading around $416, currently has the greatest weighting). But at a post-split $150 price, the story is very different."    Now, what might Nvidia replace? Well, both IBM and Intel could be candidates, since companies typically supplant others within their same sectors. "IBM's Dow weighting is right around the same level as what NVIDIA's would be. 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," Robert writes.    Or, in what would surely be a sore point for the incumbent, Nvidia could replace chip rival Intel, although Intel is only a $56 stock, so that might not technically work out as well. Same for Cisco, which Robert notes Nvidia could also supplant, but is only trading around $52 a share.    Nvidia's ascent has been one of the most incredible business (and investing) stories of the past decade. It's almost become an oversight for them not to be included in the blue-chip 30. Nvidia's now a $375 billion company, whereas recent Dow addition Salesforce is only $207 billion in size. Intel is only $228 billion in size, while IBM is a $129 billion company about to shrink further after its spinoff. (And thanks again to Robert for having all these stats at his fingertips.)    More thoughts on all this coming up in Rapid Fire. Have a great day and a great weekend!    Kelly Kelly Evans Twitter: @KellyCNBC Instagram: @realkellyevans KEY STORIES  Stocks making the biggest moves in the premarket: VF Corp, The Buckle, Palo Alto Networks & more The stocks making the biggest moves in premarket trading include VF Corp, The Buckle, Palo Alto Networks, and more. Why Asian Americans on Wall Street from Goldman Sachs to Wells Fargo are breaking their silence Asian Americans at Goldman Sachs and beyond are pushing back against the stereotype that they are merely quiet, docile workers. Bitcoin falls after China calls for crackdown on bitcoin mining and trading behavior Bitcoin's price tumbled Friday following an intensified call from Chinese authorities to crack down on mining of the cryptocurrency. 4 reasons you may want to buy Apple ahead of its annual developers conference Apple's stock could rally by as much as $60 in the near term, says TradingAnalysis.com founder Todd Gordon. Barry Diller says Apple 'overcharged in a disgusting manner' his companies on App Store Barry Diller, chairman of IAC and Expedia, told CNBC that Apple's App Store policies are excessive and should be considered "criminal." Off-the-grid homes are coming to your neighborhood, as climate change creates suburban survivalists Increasingly extreme weather from climate change is now a year-round phenomenon. This has homebuilders reconsidering how they design and power new homes. Business leaders take their election law fights behind the scenes after attacks from Republicans Corporate leaders are now fighting behind the scenes against Republican-supported voting laws following repeated attacks from GOP leaders. Verizon and T-Mobile are building digital bundles that AT&T hasn't matched While cable and technology companies fight for control over the home, wireless carriers are building bundles that may dominate the living room. April existing home sales drop, marking three straight months of declines Home sales in April dropped unexpectedly, as extremely low supply stands in the way of strong demand. Bitcoin falls back below $40,000 as it wraps up wild week of trading Bitcoin's price held firmly above the $40,000 level on Friday, as cryptocurrency investors reeled from a huge sell-off earlier this week.     IN CASE YOU MISSED IT Shifting gears, better than bitcoin?, and pulling the plug Expect lumber volatility to continue, according to Sherwood Lumber COO Cavu Ventures' Thomas on IPO market after Oatly debut   Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel Digital Products Feedback Privacy Policy   © 2021 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS