Intel will be replaced by Nvidia on the blue-chip Dow Jones Industrial Average index after a 25-year run, underscoring the shift in the chipmaking market and marking another setback for the struggling semiconductor firm, reports 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.
Once the dominant force in chipmaking, Intel has in recent years ceded its manufacturing edge to rival TSMC and missed out on the generative artificial intelligence boom after missteps including passing on an investment in ChatGPT-owner OpenAI.
Intel's shares have declined 54 per cent this year, making the company the worst performer on the index and leaving it with the lowest stock price on the price-weighted Dow.
Shares of Intel fell 1.6 per cent in extended trading on Friday, while those of Nvidia were up 2.2 per cent.
This development comes a day after Intel expressed optimism about the future of its PC and server businesses, projecting current-quarter revenue above estimates but warning that it had "a lot of work to do."
"Losing the status of Dow Jones inclusion would be another reputational blow for Intel, as it grapples with a painful transformation and loss of confidence," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
Nvidia to take Intel's spot on Dow Jones Industrial Average
FE Team | Published: November 02, 2024 22:34:51
Nvidia to take Intel's spot on Dow Jones Industrial Average
Share if you like