Nvidia to replace Intel in Dow Jones Industrial Average
Subscribe to enjoy similar stories. Nvidia will replace Intel in the Dow Jones Industrial Average next week, a swap that reflects their reversal of fortunes within the tech industry. Sherwin-Williams will replace Dow Inc.
as well. S&P Dow Jones Indices, which manages the 30-stock benchmark, said the changes were made to ensure a more representative exposure to the semiconductors industry and the materials sector. They are effective prior to the open of trading on Nov.
8. For Intel and Dow Inc., the moves are largely symbolic. There should be little practical impact because few funds track the Dow index compared with the larger S&P 500.
For Intel, being replaced by Nvidia would have been unthinkable just three years ago. Now, it underscores one of numerous strategic missteps that have demoted Intel from tech titan to a takeover target: The chip manufacturer largely missed the boat on artificial intelligence, which is developing into a driving force of the U.S. economy.
Intel shares have dropped more than 50% this year after it became clear that Chief Executive Pat Gelsinger’s turnaround plan wasn’t working. Intel paused its dividend, announced billions in cost cuts and said it would lay off 15,000 employees in a nightmare earnings report this summer that accelerated the selloff. The stock rose 7.8% Friday after the company reported a $16.6 billion quarterly loss but offered hints of optimism.
Intel joined the blue-chip index on Nov. 1, 1999. Nvidia, meanwhile, has become the highflying face of the AI boom.
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