Nvidia (NVDA) will officially join the Dow Jones Industrial Average on November 8, replacing Intel, which has struggled with performance issues. This move underscores Nvidia's prominence in the semiconductor industry, particularly in the AI sector.
Following the announcement, Nvidia's shares increased by 1%, while Intel's dipped by the same margin. Nvidia's stock has surged by 170% this year, following a 240% increase last year, bringing its market capitalization to $3.3 trillion, second only to Apple.
The demand for Nvidia's GPUs, especially the H100, has been driven by major tech companies like Microsoft, Meta, Google, and Amazon, who are investing heavily in AI infrastructure. Over the past five quarters, Nvidia's revenue has more than doubled each time, with three quarters showing it tripling.
Nvidia's upcoming AI GPU, 'Blackwell,' has generated significant excitement in the market. The company attributes its growth to the increasing focus on AI technologies.
Intel's exit from the Dow reflects its declining market share in the face of competition from AMD and its slow adaptation to the AI landscape. The company has seen its stock value halve this year due to manufacturing challenges and has announced layoffs of 16,500 employees to cut costs.
In addition to its Dow inclusion, Nvidia is expanding its presence in India, having announced partnerships with major firms such as Reliance, Yotta, and Tata Communications at the recent AI Summit in Mumbai. CEO Jensen Huang stated that India's compute power will increase dramatically by year-end, driven by Nvidia's investments in AI technology.
As Nvidia continues to innovate, its upcoming earnings report on November 20 is highly anticipated, particularly in light of the current market volatility.