Nvidia will replace Intel in the Dow Jones Industrial Average after a 25-year hiatus, underscoring changes in the chip manufacturing market and marking another setback for Intel struggling to survive. About this reported the Reuters.
Nvidia will join the index next week, along with paint maker Sherwin-Williams, which will replace Dow, S&P Dow Jones Indices said on Friday.
Intel shares have fallen 54% this year, making the company the worst performer in the index and leaving it with the lowest-priced stock in the price-weighted Dow. Intel shares also fell 1,6% in extended trading on Friday, Nov. 1, while Nvidia shares rose 2,2%.
It came a day after Intel expressed optimism about the future of its business, forecasting better-than-expected revenue for the current quarter but warning that it had "a lot of work to do."
Once a dominant force in chip manufacturing, Intel has ceded its manufacturing lead to rival TSMC in recent years and missed out on the generative artificial intelligence boom after missteps including divesting investment in OpenAI.
"Losing the Dow's inclusion status will be another reputational blow to Intel as it struggles with a painful transformation and loss of trust." said Suzanne Streeter, head of money and markets at Hargreaves Lansdown.
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