Nvidia will replace Intel in the Dow Jones Industrial Average effective November 8, following a significant surge in its stock price, which has risen over 180% this year.
According to S&P Dow Jones Indices, this change aims to provide a more representative exposure to the semiconductors industry. Nvidia's stock closed at $139.31 after-hours on Friday, while Intel's shares fell to $22.77.
Nvidia has emerged as a leader in the AI chip market, with its graphics processing units (GPUs) in high demand from major companies like Microsoft, Meta, Google, and Amazon. The company's market valuation has reached $3.3 trillion, making it the second-most valuable publicly traded company.
Intel, on the other hand, reported a record third-quarter loss of $16.6 billion, reflecting a decline of over 51% in its stock this year. The company has struggled to compete in the AI chip sector, which Nvidia dominates.
Nvidia's Q3 earnings report is expected on November 20, with revenues having increased significantly from $8.28 billion in 2022 to $30 billion by Q2 2024.