Nvidia Set to Replace Intel in the Dow Jones Industrial Average on November 8—Everything You Need to Know

Nvidia Corp., a chipmaker in the center artificial intelligence boom, joins the oldest of Wall Street’s three major stock indexes.

The company will replace a competitor Intel Corp. in the 128-year-old Dow Jones Industrial Average before the start of trading on Nov. 8, S&P Dow Jones Indices said in a statement late Friday. Sherwin-Williams Co. also joins, replacing Dow Inc.

Addition Nvidia blue-chip index is a testament to the strength of the AI-fueled rally that has propelled the chipmaker to a 900% gain over the past 24 months. The Dow Jones Industrial Average was the only major U.S. stock index that didn’t back Nvidia—until now.

“Nvidia is a well-run company, and joining the Dow demonstrates just how strong its rally has been in recent years after being in the right place at the right time when no one else was,” said Scott Colyer, chief executive of Advisors. Asset. Control.

Santa Clara, California. company was the personification of the euphoria around AI and the biggest driver of the stock market’s growth. The chipmaker ended the week with a market value of $3.32 trillion, about $50 billion less than Apple Inc. Shares rose 3.2% in after-market trading, giving Nvidia the opportunity to unseat Apple as the world’s most valuable company as soon as Monday. if profits continue.

Intel joined this indicator in November 1999 when it was added along with Microsoft Corp., SBC Communications and Home Depot Inc. Intel, once the industry leader in computer processors, has been struggling lately as part of its restructuring plan. The company cut costs in 2024, cut jobs and suspended payments to investors. The stock has lost 54% this year and was down another 2% after market close.

“Intel is way behind,” said Adam Sarhan, founder of 50 Park Investments. “Now the Dow Jones index is developing. You don’t want to see stocks that were there 30 years ago. You want to see who the strongest will survive today.”

Dow Inc., based in Midland, Michigan, is a blue chip company. index since 2019, when it was spun off by former parent company DowDuPont.

The Dow Jones Industrial Average, which originally began as an index of 12 industrial stocks including General Electric Co., has been criticized for being a much narrower gauge of stocks than the S&P 500 or Nasdaq 100 and missing technology stocks that have dominated the markets in recent years.

This is the second change this year after Amazon.com Inc. replaced Walgreens Boots Alliance Inc. in February. Prior to this, the Dow Jones Industrial Average had remained stable since August 2020, when Amgen Inc., Honeywell International Inc. and Salesforce.com replaced Exxon Mobil Corp., Pfizer Inc. and Raytheon Co.

Over more than a century, the benchmark index has grown into a 30-stock index that includes shares from the technology, financials, healthcare and consumer discretionary sectors. The committee selects 30 components and weights them by price rather than by market capitalization, as the S&P 500 index does.

The Dow’s price-weighted methodology has sometimes become a headwind for technology companies, which have avoided stock splits and whose shares often trade above $1,000. Including Nvidia until recently. The company has split its shares twice over the past four years, most recently a 10-for-1 swap that took effect in June. Nvidia shares closed at $135.40 on Friday.

Although the influence of the Dow Jones Industrial Average has waned over the years as passive managers have become tied to metrics based on market In terms of value, the index remains an exclusive club and continues to serve as one of the most striking showcases of American industrial potential.

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