S&P Dow Jones Indices announced Friday that Nvidia will replace Intel in the Dow Jones Industrial Average. The move reflects major changes in the semiconductor industry amid the artificial intelligence boom. Intel has fallen behind in the AI field and faced a series of setbacks in recent years. Race.
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S&P Dow Jones Indices announced Friday that NVIDIA will join the Dow Jones Industrial Average, replacing rival Intel, which held the spot for 25 years.
The news follows a series of setbacks for Intel, the storied nearly 60-year-old chipmaker. Intel stock has fallen by more than half in 2024 as Nvidia’s stock market value exceeded $3 trillion this year.
Nvidia shares rose 3% in post-market trading. Intel fell about 2%.
Spokespeople for Intel and Nvidia declined to comment.
Sherwin-Williams Company (SHW) will also be included in the index, replacing Dow Company (DOW).
The Dow Jones Industrial Average (DJIA) is comprised of 30 blue-chip companies, from Amazon to Walt Disney, and is often used as a benchmark for the overall U.S. economy.
Since 1999, Intel has maintained its position on the DJIA to reflect the state of the larger semiconductor industry. The company was founded in Silicon Valley in 1968 and was a dominant player in the design and manufacturing of graphics chips.
In recent years, that position has changed amid the artificial intelligence boom.
A series of failures left Intel behind in the AI race, allowing it to be replaced and Nvidia crowned the new chip king.
Intel announced in August that it would lay off 15,000 employees. The company posted a $16.6 billion loss Thursday, its biggest quarterly loss.
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Intel CEO Pat Gelsinger is moving forward with a turnaround plan, announcing new initiatives for the company’s manufacturing business, a partnership with Amazon Web Services and a $3 billion contract with the U.S. government.
Meanwhile, Nvidia, founded by Jensen Huang in 1993, is already considered a leader in the AI race.
Susquehanna analysts said in late September that Susquehanna had become “the world’s de facto AI enabler.”
Its entry into DJIA only emphasizes Nvidia’s mainstream acceptance as a market leader.
“This is another tense moment for Jensen and Nvidia, and speaks to Nvidia’s importance to the AI revolution and the market,” Wedbush analyst Dan Ives said of DJIA’s placement.
Intel’s decline from the DJIA reflects major changes in the chip industry, but it’s also a real-world decline given that the index represents less than 1% of the total stock market, according to the Corporate Finance Institute. The impact is said to be limited.
The 30 stocks currently included in the Dow Jones Industrial Average are: Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Walmart (WMT), JPMorgan Chase (JPM), and Visa ( V), UnitedHealth Group Incorporated (UNH), Home Depot (HD), Procter & Gamble Company (PG), Johnson & Johnson (JNJ), Salesforce (CRM), Coca-Cola Company (KO), Chevron Corporation (CVX), Merck & Company (MRK) ), Cisco Systems (CSCO), McDonald’s Corporation (MCD), International Business Machines Corporation (IBM), American Express Company (AXP), Caterpillar ( CAT), Verizon Communications (VZ), The Walt Disney Company (DIS), The Goldman Sachs Group (GS), Amgen (AMGN), Honeywell International (HON), Nike (NKE), The Boeing Company (BA), Intel Corporation (INTC), 3M Company (MMM), Travelers Companies (TRV), Dow (Dow).
