Nvidia to Take Intel's Spot on Dow Jones Industrial Average
Intel (INTC.O), opens new tab will be replaced by Nvidia (NVDA.O), opens new tab on the blue-chip Dow Jones Industrial Average index (.DJI), opens new tab after a 25-year run, underscoring the shift in the chipmaking market and marking another setback for the struggling semiconductor firm.
Nvidia will join the index next week along with paint-maker Sherwin-Williams (SHW.N), opens new tab, which will replace Dow (DOW.N), opens new tab, S&P Dow Jones Indices said on Friday.
Once the dominant force in chipmaking, Intel has in recent years ceded its manufacturing edge to rival TSMC (2330.TW), opens new tab and missed out on the generative artificial intelligence boom after missteps including passing on an investment in ChatGPT-owner OpenAI.
Intel’s shares have declined 54% this year, making the company the worst performer on the index and leaving it with the lowest stock price on the price-weighted Dow.
Shares of Intel fell 1.6% in extended trading on Friday, while those of Nvidia were up 2.2%.
This development comes a day after Intel expressed optimism about the future of its PC and server businesses, projecting current-quarter revenue above estimates but warning that it had “a lot of work to do.”
“Losing the status of Dow Jones inclusion would be another reputational blow for Intel, as it grapples with a painful transformation and loss of confidence,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
“It would also mean that Intel is not included in exchange-traded funds (ETFs) which track the index, which could impact the share price further.”
Launched in 1968, the Silicon Valley pioneer sold memory chips before switching to processors that helped launch the personal computer industry.
In the 1990s, “Intel Inside” stickers turned commodity electronic components into premium products, and eventually became ubiquitous on laptops.
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