Nvidia will replace Intel in the Dow Jones Industrial Average

• Nvidia replaces Intel in the Dow Jones Industrial Average, S&P Dow Jones Indices said Friday.
• The move reflects a major shift in the semiconductor industry amid the boom in artificial intelligence.
• Intel has faced a number of setbacks in recent years, falling behind in the AI ​​race.

Nvidia is joining the Dow Jones Industrial Average, the S&P Dow Jones Index said Friday, replacing its rival. Intelwho held this position for 25 years.

This news follows series of failures for Intel, a legendary chip manufacturer with almost sixty years of history. As Nvidia’s market value topped $3 trillion this year, Intel shares have more than halved in 2024.

Nvidia shares rose 3% in aftermarket trading. Intel fell about 2%.

Representatives for Intel and Nvidia declined to comment.

Sherwin-Williams The company (SHW) will also replace Dow Inc. (DOW) in the index.

The Dow Jones Industrial Average, or DJIA, consists of 30 of the largest companies, from Amazon to Walt Disney Co., and is often used as a benchmark for the U.S. economy as a whole.

Since 1999, Intel has held its position in the DJIA to reflect the state of the major semiconductor industry. The company, founded in 1968 in Silicon Valley, has been a dominant player in the design and production of graphics chips.

This position has changed in recent years amid the artificial intelligence boom.

A series of mistakes saw Intel fall behind in the AI ​​race, allowing for a changing of the guard and Nvidia being crowned the new chip king.

In August, Intel announced it would lay off 15,000 employees. On Thursday, the company reported its biggest ever quarterly loss of $16.6 billion.

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Intel CEO Pat Gelsinger organized capital improvement planannouncing new initiatives for its own manufacturing business, a partnership with Amazon Web Services and a $3 billion contract with the US government.

Meanwhile, Nvidia, founded in 1993 by Jensen Huang, is already considered a leader in the AI ​​race.

Susquehanna analysts said in late September that the company had become “the de facto global provider of artificial intelligence.”

Now, with its entry into the DJIA, the company only underscores Nvidia’s recognition as a market leader.

“This is another muscle flexing moment for Jensen and Nvidia that speaks to the AI ​​revolution and Nvidia’s importance to the market,” Wedbush analyst Dan Ives said of the DJIA stock offering.

Intel’s fall from the DJIA reflects a significant shift in the chip industry, but its real impact is limited because the index represents less than 1% of the overall stock market, according to the Corporate Finance Institute.

Here are the 30 stocks that are currently in the Dow Jones Industrial Average: Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Walmart (WMT), JPMorgan Chase (JPM), Visa (V), UnitedHealth Group Incorporated (UNH). , The Home Depot (HD), The Procter & Gamble Company (PG), Johnson & Johnson (JNJ), Salesforce (CRM), The Coca-Cola Company (KO), Chevron Corporation (CVX), Merck & Co. (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), The Travelers Companies (TRV) , Dow (DOW).