Nvidia to Replace Intel in Dow Jones Index

AI chip manufacturer Nvidia is set to replace Intel in the Dow Jones Index as the latter’s shares have declined by more than 50 percent this year.
Nvidia will be included in the index beginning Nov. 8, S&P Dow Jones Indices said in a Nov. 1 statement.
Intel is currently the worst performing stock in the Index this year, whereas Nvidia briefly became the most valuable company in the world last week, dethroning Apple. It is currently the second largest company by market cap, with Intel in the 165th position.
The Dow Jones is an index of 30 companies, with businesses added or removed from the gauge from time to time. Dow Jones “is a price weighted index, and thus persistently lower priced stocks have a minimal impact on the index,” said the statement.
Nvidia’s stock price rose by 2.91 percent to $139.31 during after-hours trading on Nov. 1, while shares of Intel declined by 1.85 percent to $22.77.
Nvidia shares have surged by more than 181 percent so far this year, as Intel’s shares have declined by more than 51 percent.
Nvidia has become a key player in the semiconductor industry because of the use of its chips in AI technologies. The company’s shares have risen by more than 900 percent over the past two years.
Intel has struggled to gain a significant foothold in the AI chip market, which is dominated by Nvidia, with the frontrunner’s chips highly sought after for the technological edge of their processors.
Nvidia joins Dow Jones ahead of the company’s third-quarter earnings report scheduled to be released on Nov. 20. Since 2022, Nvidia’s quarterly revenues have jumped from $8.28 to $30 billion, achieved in the second quarter of 2024. During this period, 7 out of 10 quarters have seen year-over-year revenue growth.
These data centers would power applications including the “digitalization of manufacturing and inspection workflows, [and the] development of AI-powered electric vehicle and robotics platforms.”
Nvidia’s graphic chips are also entangled in international conflicts.
Despite the ban, military entities, state-backed AI research institutes, and universities in China have managed to secure the powerful chips.
“Nvidia has made clear that it intends to ride the AI wave as long and as far as it can, and its astonishing dominance in GPU accelerator chips—it now holds an 80 percent overall global market share in GPU chips and a 98 percent share in the data center market—puts it in a position to crowd out competitors and set global pricing and the terms of trade,” the groups wrote.